Taylor Bank lends Guarantee Company $110,065 on January 1. Guarantee Company signs a $110,065, 7%, nine-month note. The journal entry made by Guarantee Company on January 1 for the proceeds and issuance of the note isa.Interest Expense5,778 Cash104,287 Notes Payable 110,065b.Cash110,065 Notes Payable 110,065c.Cash115,843 Interest Expense 5,778 Notes Payable 110,065d.Notes Payable104,287 Interest Payable5,778 Cash 104,287 Interest Expense 5,778

Issuance of Notes-: It is also known as the Promissory note where The borrower or the issues will…

Answered: nterest Expense 5,778 Cash 104,287…

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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Taylor Bank lends Guarantee Company $110,065 on January 1. Guarantee Company signs a $110,065, 7%, nine-month note. The journal entry made by Guarantee Company on January 1 for the proceeds and issuance of the note is

Interest Expense	5,778
Cash	104,287
Notes Payable		110,065

Cash	110,065
Notes Payable		110,065

Cash	115,843
Interest Expense		5,778
Notes Payable		110,065

Notes Payable	104,287
Interest Payable	5,778
Cash		104,287
Interest Expense		5,778

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