4 311) The $500,000 note payable has a 12% annual interest rate. The company makes payments of $75,000 annually on March 1. On March 1, 20X2, the company remitted $75,000 cash to its lender. 5 Describe the effects of this transaction on the accounting equation in terms of debits and credits Assets Prepare the appropriate journal entry for this transaction Account Name Nuba Payable Interest Payable Cash Liabilities Debi Credit 75,000 60,000 $ 75,000 Equity