On January 1, Gemstone Company Obtained a $165,000, 10-Year, 7

question 95

Multiple Choice

On January 1, Gemstone Company obtained a $165,000, 10-year, 7% installment note from Guarantee Bank. The note requires annual payments of $23,492, with the first payment occurring on the last day of the fiscal year. The first payment consists of interest of $11,550 and principal repayment of $11,942. The journal entry to record the issuance of the installment note for cash on January 1 would include a

• A) debit to Interest Expense for $11,550
• B) credit to Interest Payable for $11,550
• C) credit to Notes Payable for $165,000
• D) debit to Notes Payable for $165,000

---

Definitions:

Blood Pressure

The force exerted by circulating blood upon the walls of blood vessels, measured in systolic (maximum) and diastolic (minimum) pressures.

Hyperthermia Blanket

A medical device used to increase the body temperature of a patient, often used in hypothermia treatment or to maintain body temperature during surgery.

Traumatic Head Injury

Injury to the head arising from blunt or penetrating trauma, which can lead to various degrees of brain damage and impairment.

Vital Signs

Measurements of the body's most basic functions, including temperature, pulse, respiration rate, and blood pressure.