The Journal Entry a Company Uses to Record the Issuance

question 78

Multiple Choice

The journal entry a company uses to record the issuance of an interest-bearing note for the purpose of borrowing funds for the business is

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

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Definitions:

Ancient Species

A term usually referring to species that have existed on Earth for a very long time and may either be extinct or have modern descendants.

Laurasia

Laurasia refers to the northernmost of two supercontinents (the other being Gondwana) that formed part of the Pangaea supercontinent in late Paleozoic and early Mesozoic times.

Continental Structure

The geological configuration and constituents of continents, including the crust, mantle shelf areas, and tectonic activities.

Pangea

A supercontinent that existed during the late Paleozoic and early Mesozoic eras, assembling all the earth's landmasses into one single landform.