Question: On January 1 , 2 0 2 5 , a business borrowed $ 1 2 , 0 0 0 on a five - year, 4

On January 1,2025, a business borrowed $12,000 on a five-year, 4% notes payable. At December 31,2025, the business should record
A. interest payable of $480.
B. notes receivable of $12,000.
C. cash payment of $12,000.
D. nothing. (The note is already on the books.)
On January 1 , 2 0 2 5 , a business borrowed $ 1

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