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Tools W Chapter 3 ¢ 11 a search oziomedication.comhmtpx 1Prepare aocrual basis joumal entries for each transaction (If no entry is required for no entry is required for transactionlevent, select \"No Journal Entry Required\" Iin the first account field.) Journal entry worksheet Sorrowed $820,000 from the bank on December i, signing a note payable, due in six months. Record the transaction. Note: Enter debits before credits Clear entry general Journal MacBook Air 3 5 WERTY

Solution

Receive a Loan Journal Entry Explanation

A business applies to a bank and receives a loan of $ 820,000. The money is paid direct to the bank account of the business.

The double entry bookkeeping journal entry to show the business receive a loan is as follows:

Receive a Loan from a Bank Journal Entry

The accounting records will show the following bookkeeping transaction entries to receive a loan from a bank.

Receive a Loan Journal Entry
Journal Entry Debit Credit
Cash 820,000
Loan 820,000
Total 820,000 820,000

Receive a Loan Journal Entry Explained

Debit
Cash has been received by the business and deposited into its bank account. The debit records the increase in the cash balance in the balance sheet of the business.

Credit
The business now has a liability to repay the lender (the bank) the money on the due date in accordance with the loan agreement. The credit records this liability in the balance sheet under the heading loan.