Canton Company borrowed $50,000 on a four-year, 8% installment note. Canton will record the issuance of this note with the following entry:

Name: Canton Company borrowed $50,000 on a four-year, 8% installment note. Canton will record the issuance of this note with the following entry:
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Question

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Issuing a long-term installment note is recorded by debiting (increasing) cash and crediting (increasing) the liability notes payable for the face value of the note.

Canton Company Borrowed $50,000 on a Four-Year, 8% Installment Note