On January 1, Year 1, Wok of Fame, Inc., borrowed $700,000 at 5%. The loan will be repaid with equal annual installment payments of $50,000 made on the last day of each year, which is the company's yearend. The second installment payment journal entry will include a larger ______ than in the first installment payment journal entry.
a. debit to Notes Payable
b. credit to Notes Payable
c. credit to Interest Expense
d. debit to Interest Expense
Ans: a. debit to Notes Payable
Business
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A business purchases equipment for $8,000 cash. Which of the following accounts is debited?
A) Cash B) Accounts Payable C) Common Stock D) Equipment
Business
When the Federal Reserve Board's open market committee buys T-bills, it is pursuing
a. contractionary monetary policy. b. expansionary monetary policy. c. fiscal discipline. d. a policy of balancing the federal budget.
Business