Taylor Bank lends Guarantee Company $106,998 on January 1. Guarantee Company signs a $106,998, 12%, 9-month, interest-bearing note. The entry made by Guarantee Company on January 1 to record the proceeds and issuance of the note is Oor Cash 106,998 106,998 Notes Payable Ob. Notes Payable Interest Payable Cash Interest Expense 106,998 4,815 106,998 4,815 Oc cash 116,628 9,630 106.998 Interest Expense Notes Payable Od Interest Expense Cash Notes Payable 9,630 97,368 106,998