The hospital that you work for needs to build a new wing in order to increase their ability to take on patients through broadening the scope of the hospital's specialized offerings. In order to facilitate the transaction, the hospital must take out a $40,000,000 loan that they have 10 years to pay off. When the loan is initiated and funds are transferred, which accounting entry will take place? 

Group of answer choices 

Debit $40,000,000 to both Cash-Operating Checking and Bank Loan. 

Credit $40,000,000 to both Cash-Operating Checking and Bank Loan. 

Debit $40,000,000 to Cash-Operating Checking and credit Bank Loan the same amount. 

Credit $40,000,000 to Cash-Operating Checking and debit Bank Loan the same amount

Answer rating: 100% (QA)

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