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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

Principles of Accounting Volume 1
Principles of Accounting Volume 1
19th Edition
ISBN:9781947172685
Author:OpenStax
Publisher:OpenStax
Chapter9: Accounting For Receivables
Section: Chapter Questions
Problem 22MC: A company collects an honored note with a maturity date of 24 months from establishment, a 10%...
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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
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