On January 1, Year 1, Platte Corporation issues a 5-year note payable for $5,000. The interest rate is 5% and the annual payment of $1,156, due each December 31, includes both interest and principal.Which of the following shows the effect of the December 31, Year 1 payment?Assets = Liabilities +A. (1,156)B. (1,156)C. (1,156)D. (1,156)Multiple ChoiceOOOBalance SheetO(1,156)(906)n/a(906)Option COption AOption BOption DStockholders'Equityn/a(250)(1,156)(250)Revenuen/an/an/an/aIncome StatementExpensen/a2501,156250= Net Incomen/a(250)(1,156)(250)Statement of Cash Flows(1,156) FA(906) FA/(250) OA(1,156) OA(1,156) FA

Note payable is a negotiable instrument issued by the payer to the payee to pay certain amount of…

On January 1, Year 1, Platte Corporation issues a 5-year note payable for $5,000. The interest rate is 5% and the annual payment of $1,156, due each December 31, includes both interest and principal. Which of the following shows the effect of the December 31, Year 1 payment? Assets A. (1,156) B. (1,156) C. (1,156) D. (1,156) Multiple Choice OOO Balance Sheet Liabilities + (1,156) (906) n/a (906) Option C Option A Option B Stockholders' Equity n/a (250) (1,156) (250) Revenue n/a n/a n/a n/a Income Statement Expense = Net Income n/a n/a 250 (250) (1,156) (250) 1,156 250 Statement of Cash Flows (1,156) FA (906) FA/(250) OA (1,156) OA (1,156) FA

On January 1, Year 1, Platte Corporation issues a 5-year note payable for $5,000. The interest rate is 5% and the annual payment of $1,156, due each December 31, includes both interest and principal. Which of the following shows the effect of the December 31, Year 1 payment? Assets A. (1,156) B. (1,156) C. (1,156) D. (1,156) Multiple Choice OOO Balance Sheet Liabilities + (1,156) (906) n/a (906) Option C Option A Option B Stockholders' Equity n/a (250) (1,156) (250) Revenue n/a n/a n/a n/a Income Statement Expense = Net Income n/a n/a 250 (250) (1,156) (250) 1,156 250 Statement of Cash Flows (1,156) FA (906) FA/(250) OA (1,156) OA (1,156) FA

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter13: Long-term Liabilities

Section: Chapter Questions

Problem 1PA: On January 1, 2018, King Inc. borrowed $150,000 and signed a 5-year, note payable with a 10%...

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Subject: accounting