Moss County Bank agrees to lend the Pharoah Company $395000 on January 1. Pharoah Company signs a $395000, 6%, 9-month note. The entry made by Pharoah Company on January 1 to record the proceeds and issuance of the note is Cash 395000   Interest Expense 17775        Notes Payable   412775 Cash 395000   Interest Expense 17775        Notes Payable   395000      Interest Payable   17775 Cash 395000        Notes Payable   395000 Interest Expense 17775   Cash 377225        Notes Payable   395000

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Moss County Bank agrees to lend the Pharoah Company $395000 on January 1. Pharoah Company signs a $395000, 6%, 9-month note. The entry made by Pharoah Company on January 1 to record the proceeds and issuance of the note is

Cash 395000  
Interest Expense 17775  
     Notes Payable   412775
Cash 395000  
Interest Expense 17775  
     Notes Payable   395000
     Interest Payable   17775
Cash 395000  
     Notes Payable   395000
Interest Expense 17775  
Cash 377225  
     Notes Payable   395000
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