On May 1,2015,Continental Bank Drafted a $5,000 Personal Loan for a Customer.The

question 74

Multiple Choice

On May 1,2015,Continental Bank drafted a $5,000 personal loan for a customer.The loan is due in one year with 8% interest.What journal entry should the bank prepare on May 1,2015?

• A)Debit Cash for $5,000 and credit Notes Payable for $5,000.
• B)Debit Accounts Receivable for $5,000 and credit Service Revenue for $5,000.
• C)Debit Notes Receivable for $5,000 and credit Cash for $5,000.
• D)Debit Cash for $5,000 and credit Accounts Receivable for $5,000.

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