please show work

1. Flipco signed a 10 -year note payable on January 1, 2024, of $800,000. The note requires annual principal payments each December 31 of $80,000 plus interest at 5%. The entry to record the annual payment on December 31,2025 , includes a. a debit to Interest Expense for $36,000. b. a debit to Interest Expense for $40,000. c. a credit to Notes Payable for $80,000. d. a credit to Cash of $120,000