Zirkle Company borrowed $$129,000$ from Plains Bank on July $31,$ Year $1.$ The note carried a $6\%$ interest rate with a one$-$year term to maturity.

Required:

a$.$ Show the effects of borrowing the money and the December $31,$ Year $1$ adjustment on the accounting equation.

b$.$ What is the amount of interest expense for Year $1?$

c$.$ Prepare a statement of cash flows for the Zirkle Company for Year $1.$

Complete this question by entering your answers in the tabs below.

Required A

Show the effects of borrowing the money and the December $31,$ Year $1$ adjustment on the accounting equation.

Note: Enter any decreases to account balances with a minus sign. Leave cells blank if no input is needed.

ZIRKLE COMPANY

Effect of Adjustment on the Accounting Equation

December $31,$ Year $1$

$\backslash$table$[[$Event$,$Assets,$=$ Liabilities,$+$

$\backslash$table$[[$Stockholders$\text{'}],[$Equity$]]],[$Year $1,,,],[$July $31,,,],[$December $31,,,+$