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alina1380 [7]
3 years ago
7

The journal entry for an installment note payment includes all except:__________.

Business
1 answer:
soldi70 [24.7K]3 years ago
5 0

Answer: a. a credit to Accounts Payable.

Explanation:

When paying off a note, cash will be used so cash will have to be credited to show that it is decreasing.

Interest expense will be debited by the interest accumulated on the loan because expenses are debited when they increase.

Notes Payable will be debited to show that the note has now been retired.

There is no credit for Accounts payable involved in this transaction.

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The distribution of stock rights to existing common stockholders will increase paid-in capital at the
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Actually, Paid in capital increases whenever funds are received. This means on the day the rights are exercised and not when the rights are issued.

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4 years ago
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over 1 million

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3 years ago
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Jarvey Corporation is studying a project that would have a ten-year life and would require a $450,000 investment in equipment wh
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3 years

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