1. Third State Bank loans a customer $5,000 in exchange for a promissory note. Required 1. What is the effect of this transaction on the bank’s accounting equation? 2. Prepare the journal entry to...

1. Third State Bank loans a customer $5,000 in exchange for a promissory note.

Required

1. What is the effect of this transaction on the bank’s accounting equation?

2. Prepare the journal entry to record this transaction in the bank’s records.

2. Assume that Carnival Corporation borrows $250 million by signing a promissory note. The next day the company uses the money to buy a new ship.

Required

1. What is the effect of each of these transactions on Carnival Corporation’s accounting equation?

2. Prepare the journal entries to record both transactions in Carnival Corporation’s records.