On july 1, shady creek resort borrowed $340,000 cash by signing a 10-year, 9% installment note requiring equal payments each june 30 of $52,979. what is the journal entry to record the first annual payment? a. debit cash $340,000, debit interest expense $52,979, credit notes payable $392,979. b. debit interest expense $52,979; credit cash $52,979. c. debit interest expense $30,600; credit cash $30,600. d. debit interest expense $30,600; debit interest payable $22,379, credit cash $52,979.

Explanation:

The journal entry is shown below:

Interest Expense A/c Dr $30,600

Note Payable A/c Dr $22,379

                       To Cash A/c $52,979

(Being payment of the first installment is recorded and the remaining balance is debited to note payable account)

The interest expense is computed below:

= Principal × rate of interest × number of months ÷ (total number of months in a year)  

= $340,000× 9% × (12 months ÷ 12 months)

= $30,600

answer; /// multipotentialite means a person who have many different interests and creative pursuits in life; (one true calling);

polymath; means a person   of wide-ranging knowledge or learning;

scanner; means; a device that captures images from photographic prints,posters,magazine pages.ect;

answer/// equals both average variable cost and average total cost at their respective minimums;