Question

exercise 11-4 (algo) accounting for note payable lo p1
sylvestor systems borrows $58,000 cash on may 15 by signing a 60 - day, 6%, $58,000 note.
complete this question by entering your answers in the tabs below.
required 1 required 2a required 2b interest at maturity required 2b general journal
prepare the entry to record issuance of the note.
view transaction list
journal entry worksheet
1
record the issuance of the note.
note: enter debits before credits.
date general journal debit credit
may 15

Explanation:

Step1: Identify the accounts affected

When a note is issued and cash is received, the cash account increases (debit) and the notes - payable account increases (credit).

Step2: Determine the amounts

The amount of cash received is $58,000 and the amount of the note payable is also $58,000.

Answer:

Date	General Journal	Debit	Credit
May 15	Notes Payable		$58,000