On Jan 1, 2021, Flyer Corp paid for the $55,000 amount it had borrowed from First State Bank on September 1, 2020. Interest of $4,500 had accrued as of December 31, 2020 and was appropriately recorded in the December 2020 financial statements in its own liability account. The total $4,500 in interest was paid on Jan 1, 2021 along with the full amount borrowed. The journal entry Flyer Corp. would record on Jan 1, 2021 would include: OA a credit to Notes Payable OB. a debit to Cash OC a debit to Interest Expense D. a debit to Interest Payable
