A Business Makes a Payment of $1,400 on a Note

question 147

Multiple Choice

A business makes a payment of $1,400 on a note payable.Which of the following journal entries would be recorded?

• A) Cash is credited and Notes Payable is debited for $1,400.
• B) Notes Payable is credited and Cash is debited for $1,400.
• C) Cash is credited and Financing Expense is debited for $1,400.
• D) Cash is debited and Financing Revenue is credited for $1,400.

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Definitions:

Potential Members

Individuals who may become part of a group, organization, or system but have not yet joined or been formally incorporated.

Sponsoring Organization

An entity or group that supports a project or program, often providing funding or resources.

Contracts

Contracts are legally binding agreements between two or more parties that outline duties, rights, and conditions agreed upon by the parties.

Verbal Agreements

contracts or commitments made through spoken words rather than written documents.