Fashion Fiesta Company uses the indirect method to prepare its statement of cash flows
Refer to the following portion of the comparative balance sheet:
Fashion Fiesta Company
Comparative Balance Sheet
December 31, 2016 and 2015
2016 2015 Increase (Decrease)
Accounts Payable $6,000 $9,000 $(3,000 )
Accrued Liabilities 3,000 1,500 1,500
Long-term Notes Payable 126,000 135,000 (9,000 )
Total liabilities $135,000 $145,500 $(10,500 )
Additional information provided by the company includes the following:
During 2015, the company repaid $60,000 of long-term notes payable.
During 2015, the company borrowed $51,000 on a new long-term note payable.
Use the T-account format to evaluate the transactions affecting the long-term notes payable account.
What will be an ideal response
Long-Term Notes Payable
Repayment 60,000 135,000 Beginning
51,000 Borrowing
126,000 Ending
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