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On September 1 , 2 0 2 4 , the company borrows $ 1 , 0 0 0 , 0 0 0 cash from the
On September the company borrows $ cash from the bank to expand operations. The company
signs a year, promissory note. The companys yearend is December
How was the loan classified on the companys December balance sheet?
A Current liability
B Long term liability
C Note disclosure only
D Stockholders Equity
How was the loan classified on the companys December statement of cash flow?
A Operating activity
B Investing activity
C Financing activity
D Not shown on the statement of cash flows
$ How much interest should be accrued on December assume no previous entry was
recorded for interest on the loan
$When the note is paid at maturity August how much cash is paid to the bank?
$ When the note is paid at maturity in the second accounting year, how much does net income
decrease?
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