Reference no: EM13934953
Taylor Bank lends Guarantee Company $150,000 on January 1. Guarantee Company signs a $150,000, 8%, 9-month note. The entry made by Guarantee Company on January 1 to record the proceeds and issuance of the note is:
A.Interest Expense 12,000 Cash 138,000 Notes Payable 150,000
B. Cash 150,000 Notes Payable 150,000
C. Cash 162,000 Interest Expense 12,000 Notes Payable 150,000
D. Notes Payable 120,000 Interest Payable 7,200 Cash 120,000 Interest Expense 7,200
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