The journal entry to record the conversion of a $6,300 accounts payable to a note payable would be
A)
$\begin{array} { l l l }
\text { Cash } & 6,300 & \
\quad \text { Notes Payable } & & 6,300
\end{array}$

B)
Notes Receivable $\quad 6,300$
Notes Payable $\quad 6,300$

C)
Notes Payable $\quad 6,300$
Cash$\quad 6,300$
D)
Accounts Payable $\quad 6,300$
Notes Payable $\quad 6,300$

Question

The journal entry to record the conversion of a $6,300 accounts payable to a note payable would be  
A) 
$\begin{array} { l l l } 
\text { Cash } & 6,300 & \
\quad \text { Notes Payable } & & 6,300
\end{array}$
 
B)
Notes Receivable $\quad 6,300$
Notes Payable $\quad 6,300$
 
C) 
Notes Payable $\quad 6,300$ 
Cash$\quad 6,300$ 
D) 
Accounts Payable $\quad 6,300$
Notes Payable $\quad 6,300$

Quizplus · Accepted Answer

When converting an accounts payable to a note payable, the liability is transferred from accounts payable to notes payable, hence the correct entry debits accounts payable and credits notes payable.

The Journal Entry to Record the Conversion of a $6,300 Cash 6,300 Notes Payable 6,300\begin{array} { l l l } \text { Cash } & 6,300 & \\\quad \text { Notes Payable } & & 6,300\end{array} Cash Notes Payable ​6,300​6,300​

The Journal Entry to Record the Conversion of a $6,300 $\begin{array} { l l l } \text { Cash } & 6,300 & \\\quad \text { Notes Payable } & & 6,300\end{array}$