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    DisneyWorld's Avatar
    DisneyWorld Posts: 3, Reputation: 1
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    #1

    Mar 17, 2007, 08:28 PM
    Accounting.journal entry
    I need to make the following journal entry, how would I go about doing it?
    Thanks!

    My company borrowed cash from a bank, 500,000 with an interest rate of 6% not due in 4 years.
    Fairjer's Avatar
    Fairjer Posts: 12, Reputation: 4
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    #2

    Mar 17, 2007, 09:19 PM
    What cash account did you deposit the money into at the bank?
    What kind of accounting software are you using?

    Without knowing this. In general terms you are going to DEBIT an asset or cash account or whatever account you are going to use this 500,000 for, which as an example would be your Operating Cash account or an interest bearing cash account such as savings.

    The Credit is going to be a long term liability account such as "Notes Payable" or similar.

    I would suggest also tracking the interest paid on this loan through a separate liability account such as "Interest on Long term Loans," once you begin making monthly installments on the loan.
    DisneyWorld's Avatar
    DisneyWorld Posts: 3, Reputation: 1
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    #3

    Mar 17, 2007, 09:29 PM
    Thank you so much! It's for a class problem and I am so clueless on all of this!! :)


    Quote Originally Posted by Fairjer
    What cash account did you deposit the money into at the bank?
    What kind of accounting software are you using?

    Without knowing this. In general terms you are going to DEBIT an asset or cash account or whatever account you are going to use this 500,000 for, which as an example would be your Operating Cash account or an interest bearing cash account such as savings.

    The Credit is going to be a long term liability account such as "Notes Payable" or similar.

    I would suggest also tracking the interest paid on this loan through a separate liability account such as "Interest on Long term Loans," once you begin making monthly installments on the loan.
    CaptainForest's Avatar
    CaptainForest Posts: 3,645, Reputation: 393
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    #4

    Mar 17, 2007, 09:31 PM
    Quote Originally Posted by DisneyWorld
    thank you so much!! It's for a class problem and I am so clueless on all of this!!! :)
    Disney,

    As Fairjer said, you Debit Cash for 500,000

    Why? Because your company is receiving the asset.

    You need an offsetting credit entry, which is to notes payable, since you OWE this 500,000 to them.

    Dr. Cash 500,000
    Cr. Notes Payable 500,000
    DisneyWorld's Avatar
    DisneyWorld Posts: 3, Reputation: 1
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    #5

    Mar 17, 2007, 09:33 PM
    Thank you so much! I think I understand the basics, but what threw me off was the notes payable part. 4 problems down and 9 left, lol!


    Quote Originally Posted by CaptainForest
    Disney,

    As Fairjer said, you Debit Cash for 500,000

    Why? because your company is receiving the asset.

    You need an offsetting credit entry, which is to notes payable, since you OWE this 500,000 to them.

    Dr. Cash 500,000
    Cr. Notes Payable 500,000
    wendaline blake's Avatar
    wendaline blake Posts: 4, Reputation: 1
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    #6

    Feb 25, 2009, 04:33 PM
    I need to make the following journal entry how would I go about doing it . Thanks.
    Sold merchandise for $450 cash , cost $200
    wendaline blake's Avatar
    wendaline blake Posts: 4, Reputation: 1
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    #7

    Feb 25, 2009, 04:41 PM
    I need to make the following journal entry how would I go about doing it . Thanks.
    Sold merchandise for $450 cash , cost $200
    pready's Avatar
    pready Posts: 3,197, Reputation: 207
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    #8

    Feb 25, 2009, 05:13 PM

    Debit Cash for 450 (Amount received)
    Credit Sales Revenue for 450

    Debit COGS for 200 (cost of inventory)
    Credit Inventory for 200
    wendaline blake's Avatar
    wendaline blake Posts: 4, Reputation: 1
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    #9

    Feb 25, 2009, 05:43 PM
    I need to know what journal entry it is , how would I go about doing it, thanks
    Purchase merchandise on credit from camp $2,300
    pready's Avatar
    pready Posts: 3,197, Reputation: 207
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    #10

    Feb 26, 2009, 10:13 AM

    For Merchandise on credit the journal entry is:
    Debit Inventory for the amount of 2,300
    Credit Accounts Payable for 2,300

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