178k views
3 votes
Lauren Holland borrowed $ 10000 from Smart Touch Learning by writing a​ 1-year promissory note on November 1 with a 10​% annual interest rate. The journal entry Smart Touch Learning would record on November 1 would include a

User Sambecker
by
8.0k points

1 Answer

3 votes

Final answer:

Smart Touch Learning would record a debit to the Notes Receivable account and a credit to the Lauren Holland account for the $10,000 loan.

Step-by-step explanation:

The journal entry that Smart Touch Learning would record on November 1 would include a debit to the Notes Receivable account and a credit to the Lauren Holland account. This journal entry represents the initial transaction of Lauren Holland borrowing $10,000 from Smart Touch Learning.

The entry would look like this:

Notes Receivable $10,000 (debit)


Lauren Holland $10,000 (credit)

The debit to the Notes Receivable account indicates that the amount of $10,000 has been lent out to Lauren Holland and is now considered a receivable for Smart Touch Learning. The credit to the Lauren Holland account shows that Lauren Holland owes $10,000 to Smart Touch Learning.

User Ruslan  Ismagilov
by
8.4k points
Welcome to QAmmunity.org, where you can ask questions and receive answers from other members of our community.

9.4m questions

12.2m answers

Categories