On July 1 XYZ, corporation entered into a $100,000 5-year 4.5% installment note with its local...
On July 1 XYZ, corporation entered into a $100,000 5-year 4.5% installment note with its local bank. The company must make monthly payments of T$20,226. The journal entry to record the note payable is:
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Debit Cash $100,000; Credit Interest Expense $226; credit Notes Payable $98,774. |
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No entry is required. |
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Debit Cash $98,774; Debit Interest Expense $226; credit Notes Payable $100,000. |
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Debit Cash $100,000; credit Discount on Bonds Payable $100,000. |
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Debit Cash $100,000; credit Note Payable $100,000. |
Homework Answers
Answer
- When the Notes payable is issued, the Cash proceed received is debited to Cash account and the face value of the Notes Payable is Credited.
- Hence, Correct Answer = Option #5:
[Debit] Cash $ 100,000
[Credit] Notes Payable $ 100,000
Add Answer to:
On July 1 XYZ, corporation entered into a $100,000 5-year 4.5%
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