Taylor Bank lends Guarantee Company $112,834 on January 1. Guarantee Company signs a $112,834, 10%, 9-month, interest-bearing note. The entry made by Guarantee Company on January 1 to record the proceeds and issuance of the note isa.Interest Expense 8,463 Cash 104,371 Notes Payable 112,834b.Cash 112,834 Notes Payable 112,834c.Cash 121,297 Interest Expense 8,463 Notes Payable 112,834d.Notes Payable 112,834 Interest Payable 4,232 Cash 112,834 Interest Expense 4,232m

Cash received on issue of note = $112,834

Answered: Taylor Bank lends Guarantee Company…

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 $112,834 on January 1. Guarantee Company signs a $112,834, 10%, 9-month, interest-bearing note. The entry made by Guarantee Company on January 1 to record the proceeds and issuance of the note is

Interest Expense	8,463
Cash	104,371
Notes Payable		112,834

Cash		112,834
Notes Payable			112,834

Cash	121,297
Interest Expense		8,463
Notes Payable		112,834

Notes Payable	112,834
Interest Payable	4,232
Cash		112,834
Interest Expense		4,232m

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