Harding Ltd borrowed $150,000 from Cheng Bank.
Record the entry that Harding Ltd would make to record this at the commencement of the loan.

Question

Harding Ltd borrowed $150,000 from Cheng Bank. Record the entry that Harding Ltd would make to record this at the commencement of the loan.

Answer

DR             Cash                              $150,000 
        CR                  Loan payable                      $150,000

Answer

DR             Cash                      $150,000 
        CR                  Equity                        $150,000

Answer

DR             Equity                          $150,000 
        CR                  Loan payable                      $150,000

Answer

DR             Loan payable                $150,000 
        CR                 Cash                                         $150,000

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