On March? 1, 2018, Lewis Services issued a 9?% longminusterm notes payable for $

Question

On March? 1, 2018, Lewis Services issued a 9?% longminusterm notes payable for $ 15 comma 000. It is payable over a 3minusyear term in $ 5 comma 000 principal installments on March 1 of each? year, beginning March? 1, 2019. Which of the following entries needs to be made on March? 1, 2018?

A

Longminus?Term

15 comma 00015,000

?????Accounts Payable

15 comma 00015,000

B.

Cash

15 comma 00015,000

Longminus?Term

15 comma 00015,000

C.

Longminus?Term

5 comma 0005,000

?????Cash

5 comma 0005,000

D.

Longminus?Term

15 comma 00015,000

Longminus?Term

15 comma 00015,000

Longminus?Term

Notes Payable

15 comma 00015,000

?????Accounts Payable

15 comma 00015,000

Explanation / Answer

Journal entry :

so answer is b)

Date accounts & explanation debit credit Mar 1,2018 Cash 15000     Long term notes payable 15000

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