Question

Use the information above to answer the following question. On January 1, which of the following journal entries will be made by Brickyard to record the issuance of the note?

A) Debit Interest Expense for $6,000, debit Cash $194,000, and credit Notes Payable for $200,000

B) Debit Cash and credit Notes Payable for $200,000

C) Debit Cash for $200,000, debit Interest Expense for $6,000, and credit Notes Payable for $206,000

D) Debit Cash for $200,000, debit Interest Expense for $6,000, credit Notes Payable for $200,000, and credit Interest Payable for $6,000

Answer

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