On December 1,Victoria Company signed a 90-day,6% note payable,with a face value of $15,000.What is the journal entry to record the issuance of the note on December 1?
A)Debit Cash,$15,225; Credit Notes Payable,$15,000,Credit Interest Payable,$225.
B)Debit Cash,$15,000; Credit Notes Payable,$15,000.
C)Debit Cash,$15,000; Debit Interest Expense,$225; Credit Notes Payable,$15,225.
D)Debit Cash,$15,000; Debit Interest Expense,$75; Credit Notes Payable,$15,075.
E)Debit Cash,$15,000; Debit Interest Expense,$75; Credit Notes Payable,$15,000; Credit Interest Payable,$75.

Question

Quizplus · Accepted Answer

The journal entry to record the issuance of a note payable includes a debit to Cash for the amount received ($15,000) and a credit to Notes Payable for the same amount. There is no mention of any upfront interest payment, so options A, C, D, and E can be eliminated.

On December 1,Victoria Company Signed a 90-Day,6% Note Payable,with a Face