Taylor Bank lends Guarantee Company $101,342 on January 1. Guarantee Company signs a $101,342, 10%, 9-month, interest-bearing note. The entry made by Guarantee Company on January 1 to record the proceeds and issuance of the note is 101,342 3,801 Oa. Notes Payable Interest Payable Cash Interest Expense Ob. Interest Expense 101,342 3,801 7,601 93,741 Cash Notes Payable 101,342 Oc. Cash 108,943 Interest Expense Notes Payable 7,601 101,342 Od. Cash 101,342 Notes Payable 101,342