On 8/30/16 a company borrows $18,000 from a local bank. The principal is required to be paid in four annual installments of equal amounts ($4,500), beginning 8/30/17. The annual interest rate is 4%. The interest is payable annually, starting on 8/30/17. Which of the following statements is correct about the journal entries recorded by the company on 8/30/16? (continued from the previous question) Which of the following statements is correct about the journal entries recorded by the company on 12/31/16? An income statement account is debited for $720 An income statement account is debited for $480 A balance sheet account is credited for $240 and another balance sheet account is debited for the same amount An income statement account is debited for $240 and cash is credited for the same amount All of the above are correct O No entry is recorded on 12/31/17 None of the above is correct