The Journal Entry a Company Uses to Record the Issuance

question 11

Multiple Choice

The journal entry a company uses to record the issuance of a discounted note for the purpose of borrowing funds for the business is

• A) debit Cash and Interest Expense; credit Notes Payable
• B) debit Cash and Interest Payable; credit Notes Payable
• C) debit Accounts Payable; credit Notes Payable
• D) debit Notes Payable; credit Cash

---

Definitions:

Reconstruction Plan

A strategy or proposal to rebuild and reform the Southern United States following the Civil War.

Andrew Johnson

The 17th President of the United States, serving from 1865 to 1869, known for his efforts to rebuild the South after the Civil War but facing impeachment for his policies.

Wealthy Southern Planters

Historically, affluent landowners in the Southern United States who relied heavily on slave labor for agricultural production.

Freedmen

Refers to former enslaved African Americans who were emancipated during and after the American Civil War.