On July 1, 2019, Goode Company borrowed $110,000. The company signed a note payable with interest at 4 percent per year. The note and interest are due on December 31, 2019. On December 31, 2019, Goode paid $112,200 to settle the debt in full. Assuming no accruals for interest have been made during the year, transaction analysis of the $112,200 cash payment on December 31, 2019 should reflect which of the following?

Multiple Choice

• A decrease in assets of $112,200 and a decrease in liabilities of $112,200.

• A decrease in assets of $110,000, a decrease in stockholders' equity of $2,200, and a decrease in liabilities of $112,200.

• A decrease in stockholders' equity of $110,000, a decrease in liabilities of $2,200, and a decrease in assets of $112,200.

• A decrease in liabilities of $110,000, a decrease in stockholders' equity of $2,200, and a decrease in assets of $112,200.