On the first day of the fiscal year, Hawthorne Company obtained an $88,000, 7-year, 5% installment note from SeaSide Bank. The note requires annual payments of $15,208, with the first payment occurring on the last day of thefiscal year. The first payment consists of interest of $4,400 and principal repayment of $10,808 . The journal entryHawthorne would record to make the first annual payment due
on the note would include a
a. debit to cash for $15,208
b. credit to notes payable for $10,808
c. debit to interest expense for $4,400
d. debit to notes payable for $15,208
c
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