Explain SHOW WORK 13. Herbert First National Bank agrees to lend Newton Company $30,000 on April 1, if Newton signs a four-month (120-day), 9% interest note. Newton Company will make which of the following entries on April 1 after agreeing to the terms of the loan?
a. Cash……… ……………………………………………………………….. 30,000
Notes Payable …………………………………………………. 30,000
b. Interest Receivable …………………………………………………… 225
Interest Revenue ……………………………………………… 225
c. Cash …………………………………………………………………….. 225
Interest Revenue ……………………………………………… 225
d. Interest Expense ……………………………………………………… 900
Interest Payable 900
