The entry to record the proceeds upon issuing an interest-bearing note is

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When a company issues an interest-bearing note, the entry involves debiting Cash for the amount received and crediting Notes Payable for the face value of the note. This records the inflow of cash and the company's obligation to pay back the principal amount of the note in the future. Interest Expense and Interest Payable are not involved in the initial entry of issuing the note.

The Entry to Record the Proceeds Upon Issuing an Interest-Bearing