Helen Parish started a design company on January 1, Year 1. On April 1, Year 1, Parish borrowed cash from a local bank by issuing a one-year $42,800 face value note with annual interest based on an 13 percent discount. During Year 1, Parish provided services for $3,000 cash. Required Answer the following questions. (Hint: Record the events in T-accounts prior to answering the questions.) a. What is the amount of total liabilities on the December 31, Year 1, balance sheet? b. What is the amount of net income on the Year 1 income statement? c. What is the amount of cash flow from operating activities on the Year 1 statement of cash flows?

Helen Parish started a design company on January 1, Year 1. On April 1, Year 1, Parish borrowed cash from a local bank by issuing a one-year $42,800 face value note with annual interest based on an 13 percent discount. During Year 1, Parish provided services for $3,000 cash. Required Answer the following questions. (Hint: Record the events in T-accounts prior to answering the questions.) a. What is the amount of total liabilities on the December 31, Year 1, balance sheet? b. What is the amount of net income on the Year 1 income statement? c. What is the amount of cash flow from operating activities on the Year 1 statement of cash flows?

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter9: Accounting For Receivables

Section: Chapter Questions

Problem 22MC: A company collects an honored note with a maturity date of 24 months from establishment, a 10%...

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