Question: The journal entry to issue a promissory note for a company lending $7,000 for one year at an annual interest rate of 10% would be:

The journal entry to issue a promissory note for a company lending $7,000 for one year at an annual interest rate of 10% would be: A. Debit Notes Receivable for $7,000, credit Cash for $7,000. B. Debit Cash for $7,700, credit Notes Receivable for $7,000 and Interest Revenue for $700. C. Debit Cash for $7,000, credit Notes Receivable for $7,000. D. no entry is needed

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