Preferred shares are often issued instead of debt to increase the market value of the shares. because a corporation's debt-to-equity ratio has become too high. to avoid paying dividends to the common shareholders. to decrease the market value of the shares. On November 1, 2020. Emerald Ltd. borrowed $ 200,000 from their bank, by signing a six-month, 6% interest-bearing note. Assuming Ruby has a December 31 year end and does NOT use reversing entries, the journal entry to record payment of this note on May 1, 2021 will include a debit to Interest Expense of $ 6,000 debit to Interest Payable of $ 2,000 debit to Interest Payable of $ 8,000 credit to Note Payable of $ 200,000 At December 31, 2020, Nixel Corp.'s records show the following balances, all of which are normal: GST Payable, S 500; GST Receivable, S 345. In January 2021, Nixel pays the Federal Government the net amount owing regarding GST owing from December. The journal entry to record this payment will include a debit to GST Payable of S 155. credit to Cash of S 500. credit to GST Payable of S 500. credit to GST Receivable of $ 345