Question

On December 31, Katie Corp. records a journal entry related to an installment note that includes a debit to interest expense for $4,000, and a debit to notes payable for $9,000. Katie's journal entry should also include a credit to cash for:

Answer 1

Installment note and Notes Payable when debited for $4000 and $9000 respectively, a credit in the cash for an amount of $13,000 must be made in the books of journal entry.  

What is a journal entry?

A systematic manner of recording financial transactions of a business organization in the chronological order of their occurrence during a given financial period is known as a journal entry.

Each journal entry has a credit and a debit effect. The amount that is reflected in the debit column must match the amounts that are credited.

So, when the journal entry with a debit of $4000+$9000=$13,000 is made, a credit effect of the same in cash will be $13,000.

Hence, the effect of journal entry is given as above.

Learn more about journal entry here:

brainly.com/question/20421012

#SPJ1