Which journal entry below would be properly used to record an issuance of an installment note (borrowing money) from Local Bank on January 1 of this year. The principal of the note is $40,000, interest rate is 6%, terms of the note 5 years, annual payment $9,496. JOURNAL Page 25 date description p.ref. debit CREDIT Jan. 1 (1) (2) Group of answer choices Notes Payable debit $40,000, Cash credit $40,000 Cash debit $9,496, Notes Payable credit $9,496 Cash debit $40,000, Bonds Payable credit $40,000 Cash debit $40,000, Notes Payable credit $40,000
Which journal entry below would be properly used to record an issuance of an installment note (borrowing money) from Local Bank on January 1 of this year. The principal of the note is $40,000, interest rate is 6%, terms of the note 5 years, annual payment $9,496. JOURNAL Page 25 date description p.ref. debit CREDIT Jan. 1 (1) (2) Group of answer choices Notes Payable debit $40,000, Cash credit $40,000 Cash debit $9,496, Notes Payable credit $9,496 Cash debit $40,000, Bonds Payable credit $40,000 Cash debit $40,000, Notes Payable credit $40,000
Century 21 Accounting Multicolumn Journal
11th Edition
ISBN:9781337679503
Author:Gilbertson
Publisher:Gilbertson
Chapter18: Acquiring Capital For Growth And Development
Section18.2: Long-term Debt Financing
Problem 1OYO
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Question
Which
JOURNAL Page 25
date |
description |
p.ref. |
debit |
CREDIT |
Jan. 1 |
(1) |
|
|
|
(2) |
|
|
|
|
|
|
|
Group of answer choices
Notes Payable debit $40,000, Cash credit $40,000
Cash debit $9,496, Notes Payable credit $9,496
Cash debit $40,000, Bonds Payable credit $40,000
Cash debit $40,000, Notes Payable credit $40,000
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