Mr. Chen lends P500,000 cash to the entity. At the same, the entity uses part of the money to repay the amount owed to a creditor and holds the remaining amount of P400,000 in the bank account. The journal entry to record the transaction should be: a. Debit: Cash....................P500,000 Cash in Bank....... 400,000 Credit: Accounts Payable - Mr. Chein........... P900,000 b. Debit: Accounts Payable………. P100,000 Cash in Bank……………… 400,000 Credit: Loans Payable-Mr. Chein……… P500,000 c. Debit: Cash…………………………… P100,000 Cash in Bank……………… 400,000 Credit: Loans Payable-Mr. Chein………. P500,000 d. Debit: Cash…………………………. P400,000 Accounts Payable…….. 100,000 Credit: Cash in Bank……………………….. P500,000

Mr. Chen lends P500,000 cash to the entity. At the same, the entity uses part of the money to repay the amount owed to a creditor and holds the remaining amount of P400,000 in the bank account. The journal entry to record the transaction should be: a. Debit: Cash....................P500,000 Cash in Bank....... 400,000 Credit: Accounts Payable - Mr. Chein........... P900,000 b. Debit: Accounts Payable………. P100,000 Cash in Bank……………… 400,000 Credit: Loans Payable-Mr. Chein……… P500,000 c. Debit: Cash…………………………… P100,000 Cash in Bank……………… 400,000 Credit: Loans Payable-Mr. Chein………. P500,000 d. Debit: Cash…………………………. P400,000 Accounts Payable…….. 100,000 Credit: Cash in Bank……………………….. P500,000

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter4: The Adjustment Process

Section: Chapter Questions

Problem 2PB: To demonstrate the difference between cash account activity and accrual basis profits (net income),...

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