Question 1Your Company borrowed $35,000 on August 1, 2020. The debtcarried a 5% annual rate of interest and a one-year term. Bothinterest and principal are paid at the end of the loan period.How is this event reflected in the 2021 financial statements?2021 is the second year of the loan.(Round to the nearest dollar if necessary.)OONetIncome($1,750)NetIncome($729)NetIncome($1,021)NetIncome($1,021)Cash Flow fromOperating Activities($1750))Cash Flow fromOperating Activities($1750)Cash Flow fromOperating Activities($1750)Cash Flow fromOperating Activities$0Cash Flow fromFinancing Activities($35,000)Cash Flow fromFinancing Activities($35,000)Cash Flow fromFinancing Activities($35,000)1 pt:Cash Flow fromFinancing Activities($36,750)

Answered: Your Company borrowed $35,000 on August…

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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