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What is the journal entry when you are lent money from a bank?

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Assume a business receives a $1,000 loan from a bank; the entry would be: DEBIT: Cash 1,000. CREDIT: Loans Payable 1,000. This transaction affects Balance Sheet Accounts only: increasing ASSETS and LIABILITIES equally. There is no effect on the Equity of the business. read more

A2A - If you've actually received cash, or a check that is deposited into your bank account, you would debit your cash/checking account, and credit a new Notes Payable account for the bank loan. read more

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