Notes Payable:
Notes payable is a promissory note that is issued by the borrower to obtain a specific amount of money which the borrower promises to pay within a year on a specific date. It’s a kind of current liability.
Journal entries are the accounting transaction used to identify which accounts has been debited and credited in the journal. In the journal entries for every debit there must be a correspondence credit.
Rules of Journal Entries:
- To increases balance of account: Assets Debit, Liabilities Credit, Expenses Debit, Revenue Credit, Capital Credit
- To decreases balance of account: Assets Credit, Liabilities Debit, Expenses Credit, Revenue Debit, Capital Debit
1.
To identify: The best option.
2.
To prepare: Journal entries.
3.
To explain:-the journal entries prepare in part 2
4.
To prepare:-Journal entries assuming that the funds are borrowed on 1st December.
5.
To explain: The journal entries prepare in part 4.

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Chapter 9 Solutions
FINANCIAL AND MANAGERIAL ACCTG W/ACC CRD
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