A Five-Year, 6%, $47,000 Note Payable Is Issued on January

Multiple Choice

A five-year, 6%, $47,000 note payable is issued on January 1.Terms include fixed annual principal payments of $9,400, plus interest on the outstanding balance.The entry to record the first instalment payment will include a

A) debit to Notes Payable of $9,400.
B) credit to Interest Expense of $2,820.
C) credit to Notes Payable of $12,220.
D) debit to Cash of $9,400.