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Zirkle Company borrowed $$102,000$ from Plains Bank on July $31,$ Year $1.$ The note carried a $8\%$ interest rate with a one$-$year term to maturity.

Required:

a$.$ Show the effects of borrowing the money and the December $31,$ Year $1$ adjustment on the accounting equation.

b$.$ What is the amount of interest expense for Year $1?$

c$.$ Prepare a statement of cash flows for the Zirkle Company for Year $1.$

Complete this question by entering your answers in the tabs below.

Required $A$

Show the effects of borrowing the money and the December $31,$ Year $1$ adjustment on the accounting equation.

Note: Enter any decreases to account balances with a minus sign. Leave cells blank if no input is needed.

$\backslash$table$[[$ZIRKLE COMPANY$],[$Effect of Adjustment on the Accounting Equation$],[$December $31,$ Year $1],[$Event$,$Assets,$=,$Liabilities,$+,\backslash$table$[[$Stockholders$\text{'}],[$Equity$]]],[$Year $1],[$July $31,,=,,+,],[$December $31,,]=,,1+,]]$

Zirkle Company borrowed $$102,000$ from Plains Bank on July $31,$ Year $1.$ The note carried a $8\%$ interest rate with a one$-$year term to maturity.

Required:

a$.$ Show the effects of borrowing the money and the December $31,$ Year $1$ adjustment on the accounting equation.

b$.$ What is the amount of interest expense for Year $1?$

c$.$ Prepare a statement of cash flows for the Zirkle Company for Year $1.$

Complete this question by entering your answers in the tabs below.

What is the amount of interest expense for Year $1?$

interest expense

$1$

Required $A$

Required C

Prepare a statement of cash flows for the Zirkle Company for Year $1.$

Note: Cash outflows should be indicated with a minus sign.

$6\mathrm{.}68$

points

$01$:$04$:$25$

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$\backslash$table$[[$ZIRKLE COMPANY$],[$Statement of Cash Flows,$],[$Cash flows from operating activities,$],[,],[$Net cash flow from operating activities,$],[$Cash flows from investing activities,$],[,],[$Net cash flow from investing activities,$],[$Cash flows from financing activities,$],[,],[$Net cash flow from financing activities,$],[,]]$

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