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1 Zirkle Company borrowed $ 1 0 2 , 0 0 0 from Plains Bank on July 3 1 , Year 1 . The note

1
Zirkle Company borrowed $102,000 from Plains Bank on July 31, Year 1. The note carried a 8% interest rate with a one-year term to maturity.
Required:
a. Show the effects of borrowing the money and the December 31, Year 1 adjustment on the accounting equation.
b. What is the amount of interest expense for Year 1?
c. Prepare a statement of cash flows for the Zirkle Company for Year 1.
Complete this question by entering your answers in the tabs below.
Required A
Show the effects of borrowing the money and the December 31, Year 1 adjustment on the accounting equation.
Note: Enter any decreases to account balances with a minus sign. Leave cells blank if no input is needed.
\table[[ZIRKLE COMPANY],[Effect of Adjustment on the Accounting Equation],[December 31, Year 1],[Event,Assets,=,Liabilities,+,\table[[Stockholders'],[Equity]]],[Year 1],[July 31,,=,,+,],[December 31,,]=,,1+,]]
Zirkle Company borrowed $102,000 from Plains Bank on July 31, Year 1. The note carried a 8% interest rate with a one-year term to maturity.
Required:
a. Show the effects of borrowing the money and the December 31, Year 1 adjustment on the accounting equation.
b. What is the amount of interest expense for Year 1?
c. Prepare a statement of cash flows for the Zirkle Company for Year 1.
Complete this question by entering your answers in the tabs below.
What is the amount of interest expense for Year 1?
interest expense
1
Required A
Required C
Prepare a statement of cash flows for the Zirkle Company for Year 1.
Note: Cash outflows should be indicated with a minus sign.
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\table[[ZIRKLE COMPANY],[Statement of Cash Flows,],[Cash flows from operating activities,],[,],[Net cash flow from operating activities,],[Cash flows from investing activities,],[,],[Net cash flow from investing activities,],[Cash flows from financing activities,],[,],[Net cash flow from financing activities,],[,]]
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