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Clean 123 Inc.takes out a bank loan for $25,500.Later it makes a $120 payment towards the loan with a check.How would Clean 123 Inc.record these transactions?

Cash $25,480 Notes Payable 25,480 Notes Payable $120 Cash $120

Notes Payable $25,480 Cash 25,4800 Cash $120 Notes Payable $120

Cash $25,500 Notes Payable 25,500 Cash $120 Notes Payable $120

Cash $25,500 Notes Payable 25,000 Notes Payable $120 Cash $120

Sagot :

Answer: The correct answer is Cash $25,500 Notes Payable $25,500, Note Payable $120, Cash $120

Explanation:

Notes payables are considered as the long-liability that is recorded in liability side of balance sheet. It indicates the amount a firm owes its financiers.

How would Clean 123 Inc. record these transactions?

Correct option is C.

Given Information:

  • Bank loan=$25,500
  • Loan payment=$120

Cash Dr.            $25,500

      To Notes Payable Cr.     $25,500

( To record bank loan)

Cash Dr.              $120

     To Notes Payable Cr.          $120

( To record loan payment)

Learn more about Notes payable, refer to the link:

https://brainly.com/question/882090

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