A company borrowed $50,000 from a bank by signing a long-term note payable. Identify the journal the transaction would be recorded in.
A) Cash disbursements journal.
B) Sales journal.
C) Cash receipts journal.
D) Purchases journal.
E) General journal.

Question

Quizplus · Accepted Answer

The transaction involves receiving cash from a loan, which is recorded in the cash receipts journal.

A Company Borrowed $50,000 from a Bank by Signing a Long-Term