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Grayson Bank agrees to lend the Trust Company $98,759 on January 1. Trust Company signs a $98,759, 8%, 9-month, interest-bearing note. The entry made by Trust Company on January 1 to record the proceeds and issuance of the note is: Select the correct answer. A. Interest Expense$5,926 Cash$92,833 Notes Payable$98,759   B. Cash$107,648 Interest Expense$5,926 Notes Payable$98,759 Interest Payable$2,963   C. Cash$104,685 Interest Expense$5,926 Notes Payable$98,759   D. Cash$98,759 Notes Payable$98,759

Grayson Bank agrees to lend the Trust Company $98,759 on January 1. Trust Company signs a $98,759, 8%, 9-month, interest-bearing note. The entry made by Trust Company on January 1 to record the proceeds and issuance of the note is: Select the correct answer. A. Interest Expense$5,926 Cash$92,833 Notes Payable$98,759   B. Cash$107,648 Interest Expense$5,926 Notes Payable$98,759 Interest Payable$2,963   C. Cash$104,685 Interest Expense$5,926 Notes Payable$98,759   D. Cash$98,759 Notes Payable$98,759

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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Grayson Bank agrees to lend the Trust Company $98,759 on January 1. Trust Company signs a $98,759, 8%, 9-month, interest-bearing note. The entry made by Trust Company on January 1 to record the proceeds and issuance of the note is:

Select the correct answer.

A. Interest Expense$5,926
Cash$92,833
Notes Payable$98,759
 
B. Cash$107,648
Interest Expense$5,926
Notes Payable$98,759
Interest Payable$2,963
 
C. Cash$104,685
Interest Expense$5,926
Notes Payable$98,759
 
D. Cash$98,759
Notes Payable$98,759
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