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On January 1, 2024, Lechner Company borrowed $100,000 on a 5%, 5-year note with annual installment payments of $20,000 plus interest due on December 31
On January 1, 2024, Lechner Company borrowed $100,000 on a 5%, 5-year note with annual installment payments of $20,000 plus interest due on December 31 of each year. What is the journal entry for the first installment payment made on December 31, 2024? O A. Notes Payable Interest Expense Cash 20,000 5,000 25,000 25,000 O B. Cash Notes Payable Interest Expense 20,000 5,000 21,000 OC. Cash Notes Payable Interest Expense 20,000 1,000 OD. Notes Payable Interest Expense Cash 20,000 1,000 21,000
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