On April 1,2012,Company X lends $200,000 to Company Y on a 8% note.On April 1,2012,which of the following accounts of Company X will be affected by this transaction?

Question

Quizplus · Accepted Answer

When Company X lends money to Company Y, Company X records the loan as a Note Receivable because it is an amount owed to them. Cash decreases because the money is given to Company Y. Hence, the accounts affected are Cash (decrease) and Note Receivable (increase).

On April 1,2012,Company X Lends $200,000 to Company Y on a 8