**Title:** Zirkle Company Loan and Financial Statement Overview---**Overview:**Zirkle Company acquired a loan of $146,000 from Plains Bank on July 31, Year 1. The loan comes with a 6% interest rate and a one-year term, payable at maturity.---**Required Tasks:**a. Illustrate the effects of borrowing the money and the December 31, Year 1 adjustment on the accounting equation.b. Determine the interest expense amount for Year 1.c. Draft a statement of cash flows for Zirkle Company for Year 1.---**Instructions to Complete the Requirements:**- Enter the required information in the tabs provided.---**Prepare a Statement of Cash Flows for Year 1:**- **Note:** Indicate cash outflows with a minus sign.---**ZIRKLE COMPANY****Statement of Cash Flows****For the Year Ended December 31, Year 1**---1. **Cash flows from operating activities** | Description | Amount | |-------------|--------| | | |2. **Net cash flow from operating activities**: $03. **Cash flows from investing activities** | Description | Amount | |-------------|--------| | | |4. **Net cash flow from investing activities**: $05. **Cash flows from financing activities** | Description | Amount | |-------------|--------| | | |6. **Net cash flow from financing activities**: $07. **Ending cash balance**: $0---**Navigation:**- To proceed to the next step, click on the tabs labeled "Required B" and "Required C".---This layout of the statement of cash flows is essential for understanding the financial activities related to operating, investing, and financing for Zirkle Company in the context of their recent loan acquisition.

Statement of Cash Flow -Statement of Cash Flow is a financial statement that includes inflow and…

Answered: Zirkle Company borrowed $146,000 from…

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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Similar questions

If Service World has $1,950 cash, $400 of government Treasury bills purchased last month with a six-week maturity, and $940 of cash set aside for legal reasons, how much will the company report on the balance sheet as “Cash and Cash Equivalents”?
Directions: Read each senterce carefully and determine whether the statement is TRUE or FALS E. Write your answers on the space provided before each number. 1. At the beginning of the day, you have P200 cash in your pocket. At the end of the day, you have P50 left. If you make a horizontal analysis of your cash, you would conclude that your cash has decreased by 80% during the day. 2. In 2019, Entity A reported sales of P100 and profit of P20. In a vertical analysis, a financial statement user would conclude that Entity A was able to generate 20% profit from every peso of its sales during the period. 3. Entity A reported irventory balances of P100 and P50 in 2019 and 2018, respectively. In a horizontal analysis, a financial statement user would conclude that Entity A's inventory has increased by 50% from2018 to 2019. 4. An analysis of the intenelationships of infomation in a single period, expressed as parcentages of a common denomirator, is called horizortal analysis. 5. A comparison…
A company settles a long-term note payable plus interest by paying $68,000 cash toward the principal amount and $5,440 cash for interest. The amount reported as a use of cash under cash flows from financing activities is:
At the beginning of the year, Oriole Company has a cash balance of $25300. During the year, the company expects cash disbursements of $176000, and cash receipts of $154000. If Oriole Company requires an ending cash balance of $22000, how much must the company borrow? O $0. O $44000. O $18700. O $22000.
Moore Company is preparing its statement of cash flows for the current year. During the year, the company retired two issuances of debt and properly recorded the transactions. These transactions were as follows: Paid cash of $12,700 to retire bonds payable with a face value of $15,000 and a book value of $13,300. Paid cash of $48,000 to retire bonds payable with a face value of $45,000 and a book value of $47,000. Required: Record, in journal entry form, the entries that Moore would make for the preceding transactions on its spreadsheet to prepare its statement of cash flows. If an amount box does not require an entry, leave it blank.

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