Solomon Construction Company reported the following amount on its balance sheet at the end of 2019 and

Question:

Solomon Construction Company reported the following amount on its at the end of 2019 and 2018 for notes payable:
______________________ 12/31/2019 __________ 12/31/2018
Notes payable ................. $200,000 ................... $120,000
Required:
1. If Solomon did not repay any notes payable during 2019, determine how much cash Solomon received from the issuance of notes payable.
2. If Solomon repaid $40,000 of notes payable during 2019, determine what amounts Solomon would report in the financing activities section of the statement of cash flows?
Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...