Chapter 5, Problem 5.16E

To determine

Notes payable:

Notes payable refers to a written promise for the amounts to be paid within a stipulated period of time. This written promise is issued by a creditor to borrower. Notes payable is a liability of a business.

Interest expense:

It is a non-operating expense which represents interest payable on any borrowings like bonds, loans.

To record: The issuance of the note payable on March 1 and the cash payment on September 1 for Company T&A.