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Taylor Bank lends Guarantee Company $94,441 on January 1. Guarantee Company signs a $94,441, 6%, 9-month, interest-bearing note. The entry made by Guarantee Company on

Taylor Bank lends Guarantee Company $94,441 on January 1. Guarantee Company signs a $94,441, 6%, 9-month, interest-bearing note. The entry made by Guarantee Company on January 1 to record the proceeds and issuance of the note is

a.

Interest Expense 4,250
Cash 90,191
Notes Payable 94,441

b.

Cash 94,441
Notes Payable 94,441

c.

Cash 98,691
Interest Expense 4,250
Notes Payable 94,441

d.

Notes Payable 94,441
Interest Payable 2,125
Cash 94,441
Interest Expense 2,125

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