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On January 1, 2019, a $60,000, 6%, 6-year installment note payable is issued by the Asada Corporation. The note requires that $10,000 of principal plus

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On January 1, 2019, a $60,000, 6%, 6-year installment note payable is issued by the Asada Corporation. The note requires that $10,000 of principal plus accrued interest be paid at the end of each year (December 31). The journal entry to record the second annual payment would include A debit to Interest Expense for $3,000 A credit to Cash for $3,600 A debit to Interest Expense for $3,600 A debit to Notes Payable for $3,600 A credit to Cash for $3,000

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