On 10 July 2011,RST Ltd borrowed $1m from a finance company,agreeing to pay principal and interest of 9% in 2 years' time.What journal entry should be recorded on 10 July 2012?
A. DR Cash $\quad $ CR Loan

B. DR Cash $\quad $ CR Loan or interest payable

C. DR Cash $\quad $CR Interest expense

D. DR Loan $\quad $ CR Cash

Question

On 10 July 2011,RST Ltd borrowed $1m from a finance company,agreeing to pay principal and interest of 9% in 2 years' time.What journal entry should be recorded on 10 July 2012?
A. DR Cash  $\quad $ CR Loan

B. DR Cash  $\quad $ CR Loan or interest payable

C. DR Cash $\quad $CR Interest expense

D. DR Loan  $\quad $ CR Cash

Quizplus · Accepted Answer

The Answer of On 10 July 2011,RST Ltd borrowed $1m from a finance company,agreeing to pay principal and interest of 9% in 2 years' time.What journal entry should be recorded on 10 July 2012?
A. DR Cash  $\quad $ CR Loan

B. DR Cash  $\quad $ CR Loan or interest payable

C. DR Cash $\quad $CR Interest expense

D. DR Loan  $\quad $ CR Cash

On 10 July 2011,RST Ltd Borrowed $1m from a Finance \quad

On 10 July 2011,RST Ltd Borrowed $1m from a Finance $\quad$