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 tomaturityRequired: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 BRequired CShow 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 COMPANYEffect of Adjustment on the Accounting EquationEventYear 1July 31December 31December 31, Year 1AssetsLiabilitiesStockholders'EquityRaquinad ARequired B >13

Statement of Cash Flow -Statement of Cash Flow is a financial statement that includes inflow and…

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Accounting

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

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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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

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