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Taylor Bank lends Guarantee Company $118,978 on January 1. Guarantee Company signs a $118,978, 7%, nine-month note. The entry made by Guarantee Company on January
Taylor Bank lends Guarantee Company $118,978 on January 1. Guarantee Company signs a $118,978, 7%, nine-month note. The entry made by Guarantee Company on January 1 to record the proceeds and issuance of the note is
a.
Cash 118,978
Notes Payable
118,978
b.
Interest Expense 6,246
Cash 112,732
Notes Payable 118,978
c.
Cash 125,224
Interest Expense 6,246
Notes Payable 118,978
d.
Cash 128,347
Interest Expense 6,246
Notes Payable 118,978
Interest Payable 3,123
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