Please help with this question I am struggling.

When a promissory note is issued, you would expect to find:

Multiple Choice

• Notes payable and interest expense in the financial statements of the maker of the note throughout the life of the note.

• Notes receivable and interest revenue in the financial statements of the maker of the note throughout the life of the note.

• Notes receivable in the financial statements of the maker of the note throughout the life of the note, but interest revenue only when interest payments are received.

  • Notes payable in the financial statements of the payee of the note throughout the life of the note, but interest expense only when interest payments are made.