Question: Chieh, Inc. issued a $300,000, four-year, 8% note at face value to Cedar Bank on January 1, 2011, and received $300,000 cash. The note requires

Chieh, Inc. issued a $300,000, four-year, 8% note at to Cedar Bank on January 1, 2011, and received $300,000 cash. The note requires annual interest payments each December 31. Prepare Chieh’s journal entries to record
(a) The note issuance and
(b) The December 31 interest payment.

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