Brian Inc. borrowed $8,000 from First Bank and signed a promissory note. What en

Question

Brian Inc. borrowed $8,000 from First Bank and signed a promissory note. What entry should Brian Inc. record?

a. Debit Cash, $8,000; Credit Notes Receivable, $8,000.

b. Debit Notes Receivable, $8,000; Credit Cash, $8,000.

c. Debit Cash, $8,000; Credit Notes Payable, $8,000.

d. Debit Notes Payable, $8,000; Credit Cash, $8,000.

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General Investment Co. (GIC) purchased bonds on January 1, 2012. GIC's accountant has projected the following amortization schedule from purchase until maturity:

The investment in bonds has a maturity in:

a. Two years. b. Three years. c. Six years. d. Cannot be determined from the given information.

Explanation / Answer

answer : c. Debit Cash, $8,000; Credit Notes Payable, $8,000

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