A company issues a $25,000 three year note The stated rate and effective rate were both 2 Which journal entry should be used to record the issuance of the ling term note payable Debit Notes payable for $23,500 Credit Cash for $23,500 Debit Notes payable for $25,000 Credit Cash for $25,000 Debit Cash for $25,000 Credit Notes Payable $25,000 Debit Cash for $23,500 Credit Notes Payable $23,500 A Company issues a $25,000 three year note on the first day of the year The stated and effective rates are both 2 Which journal entry should be used to record interest expense at the end of Year 1 Debit interest Receivable for $500 Credit Cash for $500 Debit Cash for $500 Credit interest Receivable for $500 Debit interest Expense for $500 Credit Cash for $500 Debit Cash for $500 Credit interest expense for $500

Question: A company issues a $25,000 three-year note. The stated rate and effective rate were both 2%. Which journal entry should be used to record the

A company issues a $25,000 three-year note. The stated rate and effective rate were both 2%. Which journal entry should be used to record the issuance of the ling term note payable?

Debit Notes payable for $23,500; Credit Cash for $23,500
Debit Notes payable for $25,000; Credit Cash for $25,000
Debit Cash for $25,000; Credit Notes Payable $25,000
Debit Cash for $23,500; Credit Notes Payable $23,500

A Company issues a $25,000 three-year note on the first day of the year. The stated and effective rates are both 2%. Which journal entry should be used to record interest expense at the end of Year 1?

Debit interest Receivable for $500; Credit Cash for $500
Debit Cash for $500; Credit interest Receivable for $500
Debit interest Expense for $500; Credit Cash for $500
Debit Cash for $500; Credit interest expense for $500

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