Hu Consulting needs to borrow $250,000 and is trying to determine what type of debt instrument to use. The company is considering two debt instruments: a long-term notes payable and a mortgage payable. The interest rate on both instruments is 6% and both instruments mature in ten years. The mortgage payable requires monthly payments of $2,775.51. The money will be borrowed on January 1, 2020.

C. Provide the entries to record the issuance of the notes payable, and the first annual payment of the note. (2 points)