Question
On July1, ABC Company borrows $100,000 cash from the First Bank. The terms of the loan are, principal plus interest is due in 3 months.
On July1, ABC Company borrows $100,000 cash from the First Bank. The terms of the loan are, principal plus interest is due in 3 months. The interest rate is 6% annually. The journal entry to record the loan would include:
A.) A credit of $100,000 to Note Payable
B.) A credit of $106,000 to Notes Payable
C.) A debit to Notes payable of $100,000
D.) A credit to cash of $100,000
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Financial Accounting Cases
Authors: Camillo Lento, Jo-Anne Ryan
3rd Canadian Edition
1119594642, 978-1119594642
