On Nov 24, 20X1, ABC Company borrowed P750,000, 45-day loan from a bank and pledged its receivables as collateral security. ABC received the loan proceeds after deduction of P27,000 advance interest. The entry to record the transaction on Nov 24 is: Dr Cash 750,000 Cr Loans Payable 750,000 Dr Cash 723,000, Dr Discount on notes 27,000 Cr Loans Payable Dr Cash 723,000, Dr Accounts Receivable 27,000 , Cr Loans Payable 750,000 No entry required
On Nov 24, 20X1, ABC Company borrowed P750,000, 45-day loan from a bank and pledged its receivables as collateral security. ABC received the loan proceeds after deduction of P27,000 advance interest. The entry to record the transaction on Nov 24 is: Dr Cash 750,000 Cr Loans Payable 750,000 Dr Cash 723,000, Dr Discount on notes 27,000 Cr Loans Payable Dr Cash 723,000, Dr Accounts Receivable 27,000 , Cr Loans Payable 750,000 No entry required
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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29.On Nov 24, 20X1, ABC Company borrowed P750,000, 45-day loan from a bank and pledged its receivables as collateral security. ABC received the loan proceeds after deduction of P27,000 advance interest.
The entry to record the transaction on Nov 24 is:
The entry to record the transaction on Nov 24 is:
Dr Cash 750,000 Cr Loans Payable 750,000
Dr Cash 723,000, Dr Discount on notes 27,000 Cr Loans Payable
Dr Cash 723,000, Dr Accounts Receivable 27,000 , Cr Loans Payable 750,000
No entry required
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