The Journal Entry to Record the Issuance of a Note

question 76

Multiple Choice

The journal entry to record the issuance of a note for the purpose of converting an existing account payable would be

• A) debit Cash; credit Accounts Payable
• B) debit Accounts Payable; credit Cash
• C) debit Cash; credit Notes Payable
• D) debit Accounts Payable; credit Notes Payable

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Definitions:

Hydrolysis Reaction

In this chemical process, water acts to sever the bonds of a certain material.

Water Molecules

The smallest unit of water (H2O), consisting of two hydrogen atoms bonded to a single oxygen atom, which is essential for all known forms of life.

Sonogram

An image formed using ultrasound waves, commonly used for checking fetal development during pregnancy.

Radiograph

An image produced on a sensitive plate or film by X-rays, gamma rays, or similar radiation, commonly called an X-ray.