1. How does the amortization of the discount on a note payable affect a company's financial statements?

2. Which of the following statements is true regarding discount notes?

3. Company borrowed $61,000 cash. The one-year note carried a 18% rate of interest. Which of the following shows how the accrual of interest expense in Year 2 will affect Goez's financial statements?

How does the amortization of the discount on a note payable affect a company's financial statements? Muliple Choice Decreases interest expense and increases liabilities Decreoses interest expense and decreases tabilities Increases interest expense and decreases liabilites Increases interest expense and increases liabiaties Which of the following statements is true regarding discount notes? Multiple Choice They are recorded in the account "notes payable" at less than face value on the day of issue. They are not recorded until the maturity date. They are recorded in the account "notes payabie" at face valiue on the doy of issue. They are recorded in the account "notes payable" at more than face value on the day of issue. On August 1, Year 1, Gomez Comparty borrowed $61,000 cash. The one-year note carried a 13% fate of interest Which of the following shows how the accrual of interest expense in Year 2 will affect Gomez's financlal statements? Mutipie Cholece Option A Opition Ontion C option D