Additional Example On August 2018 a company borrows $25.000 Dysoning a two veo note, the note hos on annual interest rate and more on Augum 120/70 Interest and principal ore paid incoh on the maturity dole. Record of the transactions related to this boon income Statement Com How Assets Transactions Holance sheet Lloblities interest Note Payable Payable Cash Equity Retoined Coming 15,000 Rey Exp Net ncome Type Amo $ 5.000 Balance on 7/1/18 871718 Borrow money 12731778 - Adjusting entry 12/31/19 Acusting entry 8/1/20 - Pay principal 871720 - Pay interest Balance on 8/31/20 No change in Cash cowboy Ice Cream in Bence Sheet ASSETS Current Assets LIABILITIES Current Labs Total Cument tables Long-term Liabilities Total Long-term Lions Totol Uables Total Current Assets Long-term Assets STOCKHOLDERS' EQUITY: Total Long term Assets Total Stockholders' Equity Totol Assets Total Labies & Stockholden Equity 7