Reference no: EM132754662

Problem 1: On December 31, 20X1 interest equal journal entry first December 31, 20X2, Asta Corporation borrowed $65,000 by signing a 5-year, 14% installment note requiring annual payments (on December 31) of accrued plus fixed () amounts of principal. What would record the payment on ?

a. Interest Expense ...................................................................... 1,820.00

Notes Payable ........................................................................... 13,000.00

Cash ................................................................................... 14,820.00

b. Notes Payable ........................................................................... 14,820.00

Interest Payable .............................................................. 1,820.00

Cash .................................................................................. 13,000.00

c. Interest Expense ...................................................................... 9,100.00

Notes Payable .......................................................................... 13,000.00

Cash .................................................................................. 22,100.00

d. Notes Payable .......................................................................... 13,000.00

Cash .................................................................................. 13,000.00

e. Notes Payable .......................................................................... 22,100.00

Cash .................................................................................. 22,100.00