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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Definitions:

Perched Lake

A body of water situated above the normal water table, created by local, impermeable layers of rock or sediment.

Inflow

The process of water or other fluids moving into a particular area or system, contributing to the volume contained within.

Evaporation

The process by which water is converted from its liquid form to vapor, typically under the influence of sun and heat.

Limestone Aquifer

An underground layer of water-bearing permeable rock, typically limestone, which can store and yield significant quantities of groundwater.