On September 30, Yang Company signed a HK$150,000, one-year zero-interest-bearing note at First Solvent Bank. Yangs borrowing rate on such obligations is 12% (.89286 present value factor). The September 30 journal entry to record issuance of the note would include:

a debit to Cash for HK$150,000.

a debit to Notes Receivable for HK$150,000.

a credit to Notes Payable for HK$133,929.

a debit to Interest Expense for HK$16,071.