Q1 From Ch10-1 note First Tennessee Bank agrees to lend $100,000 on September 1, 2017, if James Co. signs a $100,000, 24%, four-month note maturing on January 1. When a company issues an interest-bearing note, the amount of assets it receives generally equals the note's face value. If James Co. prepares financial statements annually, it makes an adjusting entry at December 31 to recognize interest. At maturity (January 1), James Co. must pay the face value of the note plus interest. It records payment as follows