Multiple Choice
On September 30, Yang Company signed a HK$150,000, one-year zero-interest-bearing note at First Solvent Bank.Yang's borrowing rate on such obligations is 12% (.89286 present value factor) .The September 30 journal entry to record issuance of the note would include:
A) a debit to Cash for HK$150,000.
B) a debit to Notes Receivable for HK$150,000.
C) a credit to Notes Payable for HK$133,929.
D) a debit to Interest Expense for HK$16,071.
Correct Answer:

Verified
Correct Answer:
Verified
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