#8

On the first day of the fiscal year, Hawthorne Company obtained an $88,000,7-year, 5% installment note from Sea Side Bank. The note requires annual payments of $15,208, with the first payment occurring on the last day of the fiscal year. The first payment consists of interest of $4,400 and principal repayment of $10,808. The entry Hawthorne would make to joumalize the first annual payment due on the note would include a a. credit to Notes Payable for $10,808 b. debit to Interest Expense for $4,400 c. debit to Cash for $15,208 d. debit to Notes Payable for $15,208