Borrowing $100 000 of cash from Pastoral National Bank would:
Group of answer choices
none of the above would occur.
increase liabilities by a debit and increase cash by a debit.
increase cash by a credit and increase notes payable by a debit.
increase liabilities by a credit and increase cash by a debit.
decrease cash by a debit and decrease notes payable by a credit.
Increase liabilities by a credit and increase cash by a debit.
When a company borrows money from a bank, it records the transaction as an increase in its liabilities (specifically, a note payable) because it now has an obligation to repay the borrowed amount. This increase in liabilities is recorded with a credit entry. At
