Journalize borrowing 27000 from the bank for business use

Answer 1

When a business borrows money from a bank, it typically records the transaction by debiting the cash account (to reflect the increase in cash) and crediting a liability account (such as Notes Payable) to reflect the obligation to repay the borrowed amount.

Here's how you would journalize the borrowing of $27,000 from the bank:

Date: [Enter the date of the transaction]

| Account Titles | Debit | Credit | |-----------------------|-----------|-----------| | Cash | $27,000 | | | Notes Payable | | $27,000 |

Explanation:

• Cash is debited because the business is receiving $27,000 in cash from the bank.
• Notes Payable is credited because the business now has a liability to repay the borrowed amount.

Make sure to change "[Enter the date of the transaction]" to the actual date of the transaction when recording this in your accounting system.