On September 30, Yang Company Signed a HK$150,000, One-Year Zero-Interest-Bearing

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.