Question

On January 1, 2019, Brooks, Inc., borrows $90,000 from a bank to purchase machinery. Brooks signs a 5 percent installment note requiring four annual payments of principal plus interest.

Required:
Complete the necessary journal entry

Answer 1

A Journal entry for Brooks Incorporation on January 1, 2019 which is shown below

Step-by-step explanation:

Solution

Given that:

JOURNAL ENTRY FOR BROOKS INCORPORATION

Date General Journal Debit Credit

Jan 01 2019 Cash 90000

Notes Payable 90000

Thus

A Journal entry was recorded for Brooks Incorporation.

Here, the cash of $90,000 was recorded at the debit side of the Journal.

While the notes payable of $90,000 was also recorded on the credit side