On January 1, Year 1, Needham, Inc., borrowed $10,000 at 6% for four years. The note requires annual payments of $2,886 on December 31 of each year. For each item, select the amount as of or for the Year Ended December 31, Year 1, in the column of the one financial statement where the amount is found. What is Notes Payable?
A. (7,200); Income Statement
B. (2,286); Income Statement
C. (600); Income Statement
D. (300); Income Statement
E. (600); Statement of Cash Flows - Operating Activities
F. 7,714; Statement of Cash Flows - Operating Activities
G. (2,886); Statement of Cash Flows - Financing Activities
H. (2,286); Statement of Cash Flows - Financing Activities
I. (600); Balance Sheet
J. 7,114; Balance Sheet
K. 7,714; Balance Sheet
Ans: K. 7,714; Balance Sheet
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On January 1, Averroes Company sold a machine that had a book value of $7,500 for $8,000 cash. The entry by Averroes Company on January 1, will include a
A. debit to Loss on Disposal B. debit to Gain on Disposal C. credit to Loss on Disposal D. debit to Cash
Which type of clause enables the seller to keep a property on the market after receiving a contingent offer, and to accept an offer from a second buyer?
A. Extender Clause B. Safety Clause C. Bump Clause D. Hold harmless clause