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
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
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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H6.
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
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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