on-january-1st-a-company-signs-a-50000-10-1-year-note-payable-what-is-the-correc

Question

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?

Accepted Answer

Debit Cash $$50,000; Credit Notes Payable 50$$,000.

Answer

Debit Interest Expense $$5,000; Credit Cash 5$$,000.

Answer

Debit Cash $$5,000; Credit Notes Payable 5$$,000.

Answer

Debit Notes Payable $$50,000; Credit Cash 50$$,000.

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?