Answer: incomplete question
Complete question:
On July 1, Shady Creek Resort borrowed $250,000 cash by signing a 10-year, 8% installment note requiring equal payments each June 30 of $37,258. What is the appropriate journal entry to record the issuance of the note?
(A)Debit Cash $287,258; credit Interest Payable $37,258; credit Notes Payable $250,000.
(B)Debit Notes Payable $250,000; credit Cash $250,000.
(C)Debit Cash $250,000; debit Interest Expense $37,258; credit Notes Payable $287,258.
(D)Debit Cash $250,000; credit Notes Payable $250,000.
(E)Debit Cash $37,258; credit Notes Payable $37,258.
Answer: D. Debit Cash $250,000; credit Notes.
Explanation:
A debit is an accounting entry that either increases an asset or expense account, or decreases a liability or equity account. It is positioned to the left in an accounting entry. They increase the balance of dividends, expenses, assets and losses.