On March 1st, a company signs a \$75,000, 9% 1-year note payable. What is the correct journal entry to record the acquisition of this note?

• A. Debit Notes Payable \$75,000; Credit Cash \$75,000.
• B. Debit Interest Expense \$6,750; Credit Cash \$6,750.
• C. Debit Cash \$6,750; Credit Notes Payable \$6,750.
• D. Debit Cash \$75,000; Credit Notes Payable \$75,000.

Answer: (D)