Ask Experts Questions for FREE Help !
Ask
    Staci0115's Avatar
    Staci0115 Posts: 12, Reputation: 1
    New Member
     
    #1

    Nov 26, 2008, 04:49 AM
    Notes Payable
    Big Blue Manufacturing has decided to purchase some new equipment. Big Blue can pay only $500 of the $2,000 purchase price and must finance the remainder on a short-term note. The entry to the Notes Payable account is a:

    1. credit of $500

    2. credit of $2,000

    3. debit of $1,500

    4. credit of $1,500
    pready's Avatar
    pready Posts: 3,197, Reputation: 207
    Ultra Member
     
    #2

    Dec 5, 2008, 05:14 AM

    Debit Equipment for 2,000
    Credit Cash for 500
    Credit Notes Payable for 1,500

Not your question? Ask your question View similar questions

 

Question Tools Search this Question
Search this Question:

Advanced Search

Add your answer here.


Check out some similar questions!

Notes payable [ 1 Answers ]

How if I gave 10000 for my notes payable of 20000 and issued 60 days, 5% of th notes balance?

Notes Payable [ 3 Answers ]

The note payable was originated in 2004, is due in four years, and carries simple interest at 7%annually. Interest for each year is paid annually on January 4 of the following year. The payment on January 4, 2007 was properly recorded, but no other entry regarding interest has been made in 2007. ...

Notes Payable [ 2 Answers ]

On August 31, Pell Co. partially refunded $180,000 of its outstanding 10% note payable made one year ago to National Bank by paying $180,000 plus $18,000 interest, having obtained the $198,000 by using $52,400 cash and signing a new one-year $160,000 not discounted at 9% by the bank. a) Make the...


View more questions Search