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URSZINOT Borrowed $170,000 cash from a local bank, payable in two years. Record the transaction.​
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URSZINOT Borrowed $170,000 cash from a local bank, payable in two years. Record the transaction.​

User Kishikawa Katsumi
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1 Answer

6 votes

Answer:

see below

Step-by-step explanation:

This transaction will increase both assets and liabilities of URSZINOT. It will increase cash at the bank (asset account) by $170,000 and increase accounts payable (liabilities) by $170,000. An increase in liabilities credited while an increase in assets is debited.

The journal entry will be

Bank A/c Dr. $170,000

Account Payable( loan) C/r. $170,000

User LiveEn
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