Here’s the transaction:
Issue $15,000 note, maturing in 90 days, to R. Moses in payment of balance due.
I have a cash receipt, cash payment, purchase, sales, and general journal.
I think I make a post to the general journal but I’m not sure. If it is the general journal, would the entry be:
Debit – Accounts Payable-R. Moses
Credit – Notes Payable
You’re entry is correct. That is:
(Dr) Accounts Payable $15000
(Cr) Notes Payable $15000
Since, the issuance of notes has no corresponding cash receipts but just a creation of new liability (extinguishment of liability by creation of another liability), the following transaction should be recorded in General Journal.
January 29th, 2010 at 4:29 pm
You’re entry is correct. That is:
(Dr) Accounts Payable $15000
(Cr) Notes Payable $15000
Since, the issuance of notes has no corresponding cash receipts but just a creation of new liability (extinguishment of liability by creation of another liability), the following transaction should be recorded in General Journal.
References :
My brain only.