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On January 1, Gemstone Company obtained a $165,000, 10-year, 7 % installment note from Guarantee Bank. The note requires annual payments of $23,492, with the first payment occurring on the last day of the fiscal year. The first payment consists of interest of $11,550 and principal repayment of $11,942. The journal entry to record the payment of the first annual amount due on the note would include a A. debit to interest expense for $23,492 B. debit to notes payable for $11,942 C. credit to interest payable for $11,550 D. debit to cash for $11,942

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arshikhan8123

On January 1, Gemstone Company obtained a $165,000, 10-year, 7 % installment note from Guarantee Bank. The note requires annual payments of $23,492, with the first payment occurring on the last day of the fiscal year.

The first payment consists of interest of $11,550 and principal repayment of $11,942. The journal entry to record the payment of the first annual amount due on the note would include a debit to notes payable for $11,942.

What is fiscal year?

A fiscal year is a twelve month accounting period wherein a business uses for financial and tax reporting purposes. A fiscal year is also known as financial year. A fiscal year can be different to a calendar year, it does not need to start on January 1 and end on December 31.

What is an example of a fiscal year?

Fiscal Year 2023 runs from July 1, 2022 till June 30, 2023. Every fiscal year further broken down into segments called "fiscal periods."

Learn more about fiscal year here:- https://brainly.com/question/830210

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