Question

On June 1, Crane Company Ltd. borrows $99,000 from Acme Bank on a 6-month, $99,000, 8% note. The note matures on December 1. Correct answer. Your answer is correct. Prepare the entry on June 1. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit June 1 enter an account title for the entry on June 1Entry field with correct answer Cash enter a debit amountEntry field with correct answer 99000 enter a credit amountEntry field with correct answer enter an account title for the entry on June 1Entry field with correct answer Notes Payable enter a debit amountEntry field with correct answer enter a credit amountEntry field with correct answer 99000

Answer 1

Answer:

Explanation:

The journal entry is shown below:

On June 1

Cash A/c Dr $99,000

    To Notes payable A/c  $99,000

(Being the amount borrowed is recorded)

For recording this transaction, we debited the cash account and credited the notes payable account so that the correct posting can be done

All other information which is given is not relevant. Hence, ignored it