The journal entry to record the issue a promissory note, includes a credit to Note Payable for the
A)maturity value of the note.
B)face value of the note plus the interest that will accrue.
C)face value less the interest that will accrue.
D)face value of the note.

Question

Quizplus · Accepted Answer

When a promissory note is issued, the journal entry includes a credit to Note Payable for the face value of the note. Interest that will accrue is not included in this entry; it is recorded as it accrues over the life of the note.

The Journal Entry to Record the Issue a Promissory Note