A Bank Loaned York Construction Company $35,000 on a 1-Year

Multiple Choice

A bank loaned York Construction Company $35,000 on a 1-year, 6% note, but deducted the interest in advance. The transaction recorded on York's books for the receipt of the cash would include an

A) decrease in Notes Payable for $32,900.
B) increase in Interest Revenue for $2,100.
C) increase in Discount on Notes Payable for $2,100.
D) increase in Cash for $35,000.