Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

answer 6-10 please Use the following to answer questions 6 - 10 On October 1 FLY Tech, an Airline maintenance company, borrows $1,000,000 cash from

answer 6-10 please
image text in transcribed
Use the following to answer questions 6 - 10 On October 1" FLY Tech, an Airline maintenance company, borrows $1,000,000 cash from the Bank to expand operations. FLY signs a 1 year, 3.45% promissory note. Interest is payable at maturity. FLY's year-end is December 31. 6. How is the loan classified on the company's December 31, year 1 balance sheet? A. Current liability B. Long term liability C. Note disclosure only D. Stockholders' Equity 7. How is the loan classified on the company's December 31, year 1 statement of cash flow? A. Operating activity B. Investing activity C. Financing activity D. Not shown on the statement of cash flows 8. $ How much interest should be accrued on December 31 of the first year (assume no previous entry was recorded for interest on the loan)? 9. $. _When the note is paid at maturity how much cash is paid to the Bank? 10. $ When the note is paid at maturity how much does net income decrease

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Personal Financial Planning

Authors: Randy Billingsley, Lawrence J. Gitman, Michael D. Joehnk

15th Edition

9780357438480

Students also viewed these Accounting questions