The grid below is a list of possible effects on the Income Statement and the Balance Sheet. The code is + = increase, - = decrease, NE = no effect

	Revenue/Gain	Expense/Loss	Net Income	Assets	Liability	Equity
a.	NE	+	--	--	--	--
b.	NE	NE	NE	--	--	NE
c.	NE	+	--	--	+	--
d.	NE	NE	NE	NE	NE	NE
e.	NE	+	--	--	NE	--

Match the effect that the transaction below has on a company's Income Statement and Balance Sheet. Choose (a) (b) (c) (d) or (e) from the grid above. For example, if the transaction is "Collected cash on accounts receivable", the correct answer is (d) because there is no effect on revenue, expense, net income, overall assets, liabilities, or equity.

Transaction: On 12/31/2020 made the first annual $100 cash payment on an installment note payable that requires a payment of $100 at the end of each of the next five years. (The note was signed on 1/1/2020). NOTE: This question is only asking for the effects of the cash payment on 12/31/20 (the end of the first year).

a

b

c

d

e