Question

on july 1, 2024, a company acquired equipment. the company paid $187,500 in cash on july 1, 2024, and signed a $750,000 noninterest-bearing note for the remaining balance, which is due on july 1, 2025. an interest rate of 7% reflects the time value of money for this type of loan agreement. (pv of $1, pva of $1) which of the following should be included in the journal entry on july 1, 2024? note: round intermediate and final answer to nearest whole dollar amount. multiple choice credit notes payable, $700,935 and debit discount on notes payable, $49,065. debit equipment, $937,500. debit discount on notes payable, $49,065. credit notes payable, $700,935.

Answer 1

$700,935 and debit discount on notes payable a working year is the correct answer among the group of choices.

What are debits exactly?

A debit is an accounting system item that demonstrates a gain in assets and a decrease in liabilities. Debits and credits are the two categories into which the entries fall in basic accounting. Debits are always offset by credit entries.

Is debit debt or credit?

A credit increases the balance in a liabilities account whereas a debit decreases it. In this manner, the credit for the loan would equal the debit for the cash on hand account, increasing the long-term debt account by the same amount.

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