What journal entry is used for recording an increase in Loan payables due to a Bank?

To record an increase in loan payables due to a bank, the following journal entry can be made:

Journal Entry

1. Debit: Cash (Asset account) - This reflects the cash received from the bank.
2. Credit: Loan Payable (Liability account) - This reflects the increase in the obligation to repay the loan to the bank.

Example Entry

• Date: [Date of transaction]
• Debit: Cash $X
• Credit: Loan Payable $X

This entry records the cash inflow from the loan and acknowledges the corresponding liability created by the loan.