On January 1, Gemstone Company obtained a $165,000, 10-year, 7% installment note from Guarantee Bank. Thenote requires annual payments of $23,492, with the first payment occurring on the last day of the fiscal year. Thefirst payment consists of interest of $11,550 and principal repayment of $11,942 . The journal entry to record theissuance of the installment note for cash on January 1 would
include a
a. debit to interest expense for $11,550
b. credit to interest payable for $11,550
c. credit to notes payable for $165,000
d. debit to notes payable for $165,000
c
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