Question

Carson's Shoe Store signed a 90-day, interest-bearing, 10% note for $5,000.00 with First National Bank. What is Carson's Shoe Store's journal entry for the issuance of the note payable?

Answer 1

Debit Credit

Cash $5,000.00

Notes Payable $5,000.00

Step-by-step explanation:

Data provided in the question:

Amount = $5,000.00

Interest rate on note = 10%

Time = 90 days

Now,

Carson's Shoe Store's journal entry for the issuance of the note payable will be

Debit Credit

Cash $5,000.00

Notes Payable $5,000.00