Brian IncBorrowed $8,000 from First Bank and Signed a Promissory Note

question 20

Multiple Choice

Brian Inc.borrowed $8,000 from First Bank and signed a promissory note.What entry should First Bank record?

• A)Debit Cash,$8,000;Credit Notes Receivable,$8,000.
• B)Debit Notes Receivable,$8,000;Credit Cash,$8,000.
• C)Debit Cash,$8,000;Credit Notes Payable,$8,000.

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Definitions:

Fixtures

Items that are originally personal property but become real property when attached in a permanent manner to real estate.

Furnishings

Items designed to make a space such as a room or building suitable for living or working in, including furniture, floor coverings, and decorations.

Limitations Period

A set period of time within which a legal claim must be filed or be permanently barred.

Breach

A violation or infringement of a law, obligation, standard, or agreement.