Question Content Area

On January 1, 2021, a company obtained a $525,000, 8-year, 6% installment note from Community Bank. The note requires annual payments of $84,544, with the first payment occurring on the last day of the fiscal year, December 31, 2021. The journal entry to record the payment of the second annual amount due on December 31, 2022 on the note would include interest of:

$26,427 $56,227 $28,317 $31,500