A company lends its CEO $150,000 for 3 years at a 6% annual interest rate.Interest payments are to be made twice a year.The company initially records the transaction by:
A) debiting Notes Receivable for $150,000 and crediting Cash for $150,000.
B) debiting assets for $150,000 and crediting liabilities for $150,000.
C) debiting Cash for $9,000 and crediting Interest Revenue for $9,000.
D) debiting Interest Receivable for $4,500 and crediting Interest Revenue for $4,500.
Correct Answer:
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