The journal entry used to record the issuance of an interest-bearing note for the purpose of borrowing funds for the business is

Debit Accounts Payable and the Credit notes payable

Explanation:

 The debit accounts payable is the liability account that measure the amount given by the vendors by purchasing the various types of products and the services from an organization.

 When the liability gets increase which means that the account payable get credited or increased.

 According to the given question, the journal entry is basically used for recording the insurances for the purpose of borrowing funds for the business is known as the credit notes payable and the debit accounts payable.

 Therefore,  Debit Accounts Payable and the Credit notes payable is the correct answer.

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