On July 1, Shady Creek Resort borrowed $250,000 cash by signing a 10-year, 8% installment note requiring equal payments each June 30 of $37,258. What is the appropriate journal entry to record the issuance of the note?

A. Debit Cash $250,000; credit Notes Payable $250,000.
B. Debit Cash $37,258; credit Notes Payable $37,258.
C. Debit Cash $287,258; credit Interest Payable $37,258; credit Notes Payable $250,000.
D. Debit Notes Payable $250,000; credit Cash $250,000.
E. Debit Cash $250,000; debit Interest Expense $37,258; credit Notes Payable $287,258.


Answer: A

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