Question
Diana Jelly, founder and owner of a paint shop, received a loan of $5,000 from the bank. How should this transaction be recorded in the
Diana Jelly, founder and owner of a paint shop, received a loan of $5,000 from the bank. How should this transaction be recorded in the books?
a. Increase (Credit) Cash $5,000; Increase (Credit) Bank Loan $5,000
b. Increase (Credit) Accounts Payable $5,000; Increase (Credit) Bank Loan $2,500; Increase (Debit) Cash $2,500
c. Increase (Debit) Cash $5,000; Increase (Debit) Bank Loan $5,000
d. Increase (Debit) Cash $5,000; Increase (Credit) Bank Loan $5,000
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Construction accounting and financial management
Authors: Steven j. Peterson
2nd Edition
135017114, 978-0135017111
