Chico Company borrowed $40,000 on a four-year, 8% installment note. How will Chico record the issuance of this note? Multiple Choice 43,200 Cash Notes payable 43,200 40,000 Cash Interest payable Notes payable 3,200 36,800 Cash Disco on notes payable Notes payable 36,800 3,20 40,000 40,000 Cash Notes payable 40,000 Davis Corporation borrowed $50,000 on January 1, Year 1. The loan is for a 5-year period and has an annual interest rate of 9%. At the end of each year, Davis will make a payment of $7,791, which includes both principal and interest. The amount of the payment for Year 1 that is interest expense is $4,500. True or False True False Pace Company issued bonds with a face value of $200,000 at 97. How does the issuance affect the company's accounting equation? Multiple Choice Assets and liabilities would both increase by $200,000. Assets would increase by $200,000, and liabilities would increase by $194,000. Assets and liabilities would both increase by $194,000. a Assets would increase by $194,000 and liabilities would increase by $200,000