Notes Payable and Interest On July 1, 2017, Anna's Garden Shon borrowed $78,010 from the bank. Anna signed a ten-month, 8% promissory nate for the entire amount. Anna's uses a calendar yrar-end. Required: 1. Identify and analyze the effect of the issuance of the promissory note. Activity Financing Accounts Cash Increase, Notes Payable Increase Statements) Balance Sheet only Pedas Check my work How does this entry affect the accounting equation? Ir a financial statement item is not affected, select 'No Entry" and leave the amount box blank. If the effect on a financial statement item is negative, ie, a decrease, be sure to enter the answer with a minus sion Balance Sheet Income Statement Stockholders' a Equity Assets Liabilities Revenues Expenses Cash 28,000 Notes Payable 28,000 O No Entry o No Entry 07 Feedback 2. Identity and analyze the effect of any adjustments need t yard. Activry Operating Accounts Interest Payable Eners, Interest Expense Inc Statements) Balance Sheet and Income Statement Toutes How does this entry affect the accounting equation? at a financial statement item is not affected, select "No try and the amount buzlank. If the act on a fine al statement is negative, ice, sur tot enter the answer with a minus sign. Use months in calculation. Do not rund interkulations. If road, run your finansnetto the marte dellar. Balance Sheet Income Statement Stockholders' Net Assets Liabilities Revenues Expenses Equity -1,000 X Income -1,000 X No Entry Interest Payable 1,000 x No Entry O Interest Expense 1,000 X 3. Identify wd analyze the effect of the payment of principales Activity Financing Accounts Cash Increase Notes Payable Decrease, Interest Payable Decrease, Interest Expense IncrX Statement) Balance sheet and Income Statement Toad w Identity and are the reaction by using the folcwing steps 1. Determina alivyoking, investing of Financing 2. Dermid accounts affected and the amount of INTHA decreasca 3. Determine the financial statements affectel - balance shee, income statement cholen The accounting equation must balene for each transaction How does this entry affect the counting equation? If a financial statement item is not affected, slet "Me Entry and leave the amount box blanc if the effect on a financial statement item is negative, cres, be sure to enter the answer with a minus sign. Le months in calculation. Do not round intermediate calculations. If recie, round your final answer to the nearest cellar Balance Sheet Income Statement Net Stockholders Equilty Revenues Expenses Income Assets 25,000 x Labilities Notes Payable -25,000 X Cash -667 X X No Entry 667 X X Interest Expense -667 X No Entry 0 No Entry X No Entry No Entry