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Arnold Company issues a 5-year, 9% installment note for $28,000 to County Bank. Annual payments are $7,199. The journal entry to record the issuance of the installment note payable would include a a. credit to Notes Payable for $30,520. b. credit to Cash for $28,000. O c. debit to Cash for $28,000. O d. credit to Interest Payable for $2,520.

Arnold Company issues a 5-year, 9% installment note for $28,000 to County Bank. Annual payments are $7,199. The journal entry to record the issuance of the installment note payable would include a a. credit to Notes Payable for $30,520. b. credit to Cash for $28,000. O c. debit to Cash for $28,000. O d. credit to Interest Payable for $2,520.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Arnold Company issues a 5-year, 9% installment note for $28,000 to County Bank. Annual payments are $7,199. The journal entry to record the issuance of the installment note payable would include a a. credit to Notes Payable for $30,520. O b. credit to Cash for $28,000. c. debit to Cash for $28,000. d. credit to Interest Payable for $2,520.
Transcribed Image Text:Arnold Company issues a 5-year, 9% installment note for $28,000 to County Bank. Annual payments are $7,199. The journal entry to record the issuance of the installment note payable would include a a. credit to Notes Payable for $30,520. O b. credit to Cash for $28,000. c. debit to Cash for $28,000. d. credit to Interest Payable for $2,520.
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