On January 1, 2012, Chan Enterprises borrowed $100,000 from a bank on a thre year mortgage with an interest rate of 5% per year. On December 30, 2012, Chan paid the bank $36,721. Chan uses US GAAP to prepare its financial statements. Which of the following items would be decreased by the mortgage payment? (check all that apply)

On January 1, 2012, Chan Enterprises borrowed $100,000 from a bank on a thre year mortgage with an interest rate of 5% per year. On December 30, 2012, Chan paid the bank $36,721. Chan uses US GAAP to prepare its financial statements. Which of the following items would be decreased by the mortgage payment? (check all that apply)

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

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Title
On January 1, 2012, Chan Enterprises
borrowed $100,000 from a bank on a thre
year mortgage with an interest rate of 5%
per year. On December 30, 2012, Chan paid
the bank $36,721. Chan uses US GAAP to
prepare its financial statements.
Which of the following items would be
decreased by the mortgage payment? (check
all that apply)
Cash from Operating Activities
Net Income
Cash from Financing Activities
Mortgage Payable
Cash from Investing Activities
В
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