Which journal entry below would be properly used to record an issuance of an installment note (borrowing money) from First Bank on January 1 of this year. The principal of the note is $50,000, interest rate is 7%, terms of the note 5 years, annual payment $12,195. JOURNAL Page 25 DATE DESCRIPTION P.REF. DEBIT CREDIT Jan. 1 (1) (2) Notes Payable debit $50,000, Cash credit $50,000 Cash debit $12,195, Notes Payable credit $12,195 Cash debit $50,000, Notes Payable credit $50,000 Cash debit $12,195, Bonds Payable credit $12,195

Which journal entry below would be properly used to record an issuance of an installment note (borrowing money) from First Bank on January 1 of this year. The principal of the note is $50,000, interest rate is 7%, terms of the note 5 years, annual payment $12,195. JOURNAL Page 25 DATE DESCRIPTION P.REF. DEBIT CREDIT Jan. 1 (1) (2) Notes Payable debit $50,000, Cash credit $50,000 Cash debit $12,195, Notes Payable credit $12,195 Cash debit $50,000, Notes Payable credit $50,000 Cash debit $12,195, Bonds Payable credit $12,195

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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