On December 1, Victoria Company signed a 90-day, 6% note payable, with a face value of $15,000. What is the journal entry to record the issuance of the note on December 1?
A. Debit Cash, $15,225; Credit Notes Payable, $15,000, Credit Interest Payable, $225.
B. Debit Cash, $15,000; Credit Notes Payable, $15,000.
C. Debit Cash, $15,000; Debit Interest Expense, $225; Credit Notes Payable, $15,225.
D. Debit Cash, $15,000; Debit Interest Expense, $75; Credit Notes Payable, $15,000; Credit Interest Payable, $75.
E. Debit Cash, $15,000; Debit Interest Expense, $75; Credit Notes Payable, $15,075.
Answer: B
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