. Show the effects of borrowing the money and the December 31, Year 1 adjustment on the accounting equation.
. Show the effects of borrowing the money and the December 31, Year 1 adjustment on the accounting equation.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
![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 Required B
Required C
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
Event
Year 1
July 31
December 31
December 31, Year 1
Assets
Liabilities
Stockholders'
Equity
Raquinad A
Required B >
13](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F3ade3c6a-6506-43d5-a25b-e42680580195%2Ffa9a3a1d-6c22-40fe-9ad5-1fa722a25524%2Fsw72xai_processed.png&w=3840&q=75)
Transcribed Image Text: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 Required B
Required C
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
Event
Year 1
July 31
December 31
December 31, Year 1
Assets
Liabilities
Stockholders'
Equity
Raquinad A
Required B >
13
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