n january 1, year 1, stratton company borrowed $260,000 on a 10-year, 10% installment note payable. the terms of the note require stratton to pay 10 equal payments of $42,314 each december 31 for 10 years. the required general journal entry to record the payment on the note on december 31, year 2 is (round to the nearest dollar): multiple choice debit interest expense $26,000; debit notes payable $16,314; credit cash $42,314. debit notes payable $26,000; debit interest expense $16,314; credit cash $42,314. debit interest expense $24,369; debit notes payable $17,945; credit cash $42,314. debit notes payable $42,314; credit cash $42,314. debit notes payable $260,000; debit interest expense $16,314; credit cash $42,314.