Answer:
The Accounts affected are :
- Cash
- Note Payable
Effect of this transaction is :
- Increase the Assets of Cash
- Increase the Liabilities
Explanation:
The entry to record this transaction is :
Cash $25,000 (debit)
Note Payable $25,000 (credit)
Being recognition of Note Payable arising due to signing of a two-year promissory note.
