You are looking at your financial statements and see that your loans payable' account has a balance of $1.000. Without needing to look at any other line of the financial statements, what does this tell you and does this account generally have a debit or credit balance? You took out a $1,000 loan from the bank that must be paid back - Credit You took out a $1.000 loan from the bank that must be paid back - Debit You have to pay off $1,000 on your loans in the next year - Credit You have to pay off $1,000 on your loans in the next year - Debit