On January 1, 2018, Brazos Company purchased equipment and signed a six-year mortgage note for $97,000 at 15%. The note will be paid in equal annual installments of $25,631, beginning January 1, 2019. On January 1, 2019, the journal entry to record the first installment payment will include a . (Round your answer to the nearest whole number.) A. credit to Mortgage Payable for $97,000

the original journal entry should be:

January 1, 2018, equipment purchased

Dr Equipment 97,000

    Cr Notes payable 97,000

accrued interest on December 31 2018 should be:

Dr Interest expense 14,550

    Cr Interest payable 14,550

the first installment should be recorded as:

January 1, 2019, first installment paid on notes payable

Dr Interest payable 14,550

Dr Notes payable 11,081

    Cr Cash 25,631