D Company issued a 4-year $80,000 note payable with an interest rate of 3% on January 1.
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Question:
D Company issued a 4-year $80,000 note payable with an interest rate of 3% on January 1. Interest is paid annually on December 31. The journal entry on December 31 shows
A debit to Cash of $80,000 x .03.
A credit to Interest expense of $80,000 x .03
Both of the above
Neither of the above
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