Taylor Bank lends Guarantee Company $150,000 on January 1. Guarantee Company signs a $150,000, 8%, 9-month, interest-bearing note. The entry made by Guarantee Company on January 1 to record the proceeds and issuance of the note is a. Cash 150,000 Notes Payable 150,000 b. Notes Payable 120,000 Interest Payable 7,200 Cash 120,000 Interest Expense 7,200 c. Interest Expense 12,000 Cash 138,000 Notes Payable 150,000 d. Cash 162,000 Interest Expense 12,000 Notes Payable 150,000

Taylor Bank lends Guarantee Company $150,000 on January 1. Guarantee Company signs a $150,000, 8%, 9-month, interest-bearing note. The entry made by Guarantee Company on January 1 to record the proceeds and issuance of the note is a. Cash 150,000 Notes Payable 150,000 b. Notes Payable 120,000 Interest Payable 7,200 Cash 120,000 Interest Expense 7,200 c. Interest Expense 12,000 Cash 138,000 Notes Payable 150,000 d. Cash 162,000 Interest Expense 12,000 Notes Payable 150,000

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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