USA Greetings. In need of some help.

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Hey guys, my name is John :) . I'm new here and it's nice to meet you all :D .
With that said, I'm in need of some help with understanding the instructions :(. I am taking financial accounting at my college and this is a notes payable problem. Here it is:

"Jenny Kanne and Cindy Travis borrowed $12,480 on a 7-month, 10% note from Golden State Bank to open their business, KT’s Coffee House. The money was borrowed on June 1, 2014, and the note matures January 1, 2015."

Directions: "Prepare the entry to record the receipt of the funds from the loan."

When it says "receipt," is it talking about "receiving" the funds from the loan :confused: ?
Anyways, here's my journal entry:

Cash 12,480
Notes Payable 12,480

For anyone that reads, please feel free to respond at anytime at your convenience. I'll be working on it to figure it out but your input would be greatly appreciated. Have a great evening.
 

Fidget

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Directions: "Prepare the entry to record the receipt of the funds from the loan."

When it says "receipt," is it talking about "receiving" the funds from the loan :confused: ?
Yes. It's 'receipt' as in 'having received' rather that the other receipt - that little bit of paper with details of a transaction on it commonly from shops.
 

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