On October 1,Pinnacle Co

Multiple Choice

On October 1,Pinnacle Co.signs a note for $360,000 to provide the funds needed to build a new facility.The note is due in 10 years,includes an annual interest rate at 7%,and requires semiannual interest payments each April and October.The journal entry to record the issuance of the promissory note should debit:

A) Notes Payable for $360,000,debit Interest Expense for $25,200,credit Cash for $360,000,and credit Interest Payable for $25,200.
B) Accrued Interest and credit Cash for $25,200.
C) Cash and credit Notes Payable for $360,000.
D) Cash for $360,000,debit Interest Expense for $25,200,credit Notes Payable for $360,000,and credit Interest Payable $25,200.