Arnold Company issues a 5-year, 9% installment note for $28,000 to County Bank. Annual payments are $7,199. The journal entry to record the issuance of the installment note payable would include a a. credit to Notes Payable for $30,520. b. credit to Cash for $28,000. O c. debit to Cash for $28,000. O d. credit to Interest Payable for $2,520.

Arnold Company issues a 5-year, 9% installment note for $28,000 to County Bank. Annual payments are $7,199. The journal entry to record the issuance of the installment note payable would include a a. credit to Notes Payable for $30,520. b. credit to Cash for $28,000. O c. debit to Cash for $28,000. O d. credit to Interest Payable for $2,520.

Financial Accounting

14th Edition

ISBN:9781305088436

Author:Carl Warren, Jim Reeve, Jonathan Duchac

Publisher:Carl Warren, Jim Reeve, Jonathan Duchac

Chapter14: Long-term Liabilities: Bonds And Notes

Section: Chapter Questions

Problem 11E

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