Describe all of the effects for the current fiscal year

The firm declared dividends of $100, one month before the end of the year. The dividends

will be paid in cash early next year.

balance sheet: dividend payable up 100

income statement

retained earnings portion of the statement of shareholders' equity: dined expense up 100

CF statement:

Three months after the beginning of the year, the firm borrowed $2,000 at an annual

interest rate of 5%. The loan is for one year and is classified as a note payable. The note

payable, and all the related interest, will be paid off at the maturity date.

balance sheet: note payable 2000 interest payable 75

income statement:

retained earnings portion of the statement of shareholders' equity: NI up 2000

CF statement: cf operating activities up 2000