on-march-1st-a-company-signs-a-75000-9-1-year-note-payable-what-is-the-correct-j

Question

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?

Accepted Answer

Debit Cash $$75,000; Credit Notes Payable 75$$,000.

Answer

Debit Notes Payable $$75,000; Credit Cash 75$$,000.

Answer

Debit Interest Expense $$6,750; Credit Cash 6$$,750.

Answer

Debit Cash $$6,750; Credit Notes Payable 6$$,750.

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?