The journal entry a company uses to record the issuance of a note for the purpose of borrowing funds for the b

The journal entry a company uses to record the issuance of a note for the purpose of borrowing funds for the business is:


A.debit Notes Payable; credit Cash


B.debit Cash and Interest Expense; credit Notes Payable


C.debit Accounts Payable; credit Notes Payable


D.debit Cash; credit Notes Payable|||well if they issue a note in oder to get cash...then they are getting CASH....





ANY increase of an ASSET is a debit





So cash up


Debit CASH





That Almost makes D the correct answer.





lets look at the credit. They are issuing a note payable. THAT's a liabilitiy. An increase in a liability is a credit





Ok, D again.





A is completely reversed!!!





Remember


the following











Asset Increase DEBIT


Asset decrease Credit





Liability Increase Credit


Liability decrease Debit





ALWAYS ALWAYS ALWAYS