On January 1st, a company signs a \$50,000, 10% 1-year note payable. What is the correct journal entry to record the acquisition of this note?

• A. Debit Interest Expense \$5,000; Credit Cash \$5,000.
• B. Debit Cash \$5,000; Credit Notes Payable \$5,000.
• C. Debit Notes Payable \$50,000; Credit Cash \$50,000.
• D. Debit Cash \$50,000; Credit Notes Payable \$50,000.

Answer: (D)