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

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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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 Choice
O
O
O
Balance Sheet
O
(1,156)
(906)
n/a
(906)
Option C
Option A
Option B
Option D
Stockholders'
Equity
n/a
(250)
(1,156)
(250)
Revenue
n/a
n/a
n/a
n/a
Income Statement
Expense
n/a
250
1,156
250
= Net Income
n/a
(250)
(1,156)
(250)
Statement of Cash Flows
(1,156) FA
(906) FA/(250) OA
(1,156) OA
(1,156) FA
Transcribed Image Text: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 Choice O O O Balance Sheet O (1,156) (906) n/a (906) Option C Option A Option B Option D Stockholders' Equity n/a (250) (1,156) (250) Revenue n/a n/a n/a n/a Income Statement Expense n/a 250 1,156 250 = Net Income n/a (250) (1,156) (250) Statement of Cash Flows (1,156) FA (906) FA/(250) OA (1,156) OA (1,156) FA
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