Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. on january 1, 2016 the mahoney company borrowed $3

On January 1, 2016 the Mahoney Company borrowed $324,000 cash from Sun Bank by issuing...

70.2K

Verified Solution

Question

Accounting

On January 1, 2016 the Mahoney Company borrowed $324,000 cash from Sun Bank by issuing a five-year 8% term note. The principal and interest are repaid by making annual payments beginning on December 31, 2016. The annual payment on the loan based on the present value of annuity factor would be $81,150. Which choice reflects the financial statement effects of the cash payment on December 31, 2016? Assets = Liab + Equity Revenue - Expense = Net Inc Cash Flow A. - = - + - NA - + = - -FA/-OA B. - = - + NA NA - NA = NA -FA C. - = + + - NA - + = - -FA/-OA D. - = - + NA NA - + = - -OA Option C Option A Option B Option D

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Basic Math
1.2K views

A national organization that promotes good local government management (ICMA) is interested if a city’s region...

Accounting
1.2K views

On January 1, 2018 you bought a zero coupon bond with 5 years to maturity at...

Physics
1.2K views

5 A train of length 300 m travelling at 30 m s 1 crosses another...

Geometry
1.2K views

a Similarity Question 1 Select one BE In the figure above which of the following...

Basic Math
1.2K views

Kimi Skuban deposits $2,000 at the beginning of each year into an Individual Retirement Account...

Algebra
1.2K views

transformation of f x is the same as its inverse f 1 x

Algebra
1.2K views

Evaluate the expression below for p = -2 and q = 3: [(p^2)q]^3

Accounting
1.2K views

Among the advantages of using a relational database is enforcing business rules. Based on...

Accounting
1.2K views

Barbara Karloff Inc. recently set up as a microbrewery to manufacture a variety of beers,...

Accounting
1.2K views

Help Save & E Required information The following information applies to the questions displayed below)...

Accounting
1.2K views

Under the indirect method, a decrease in Land would a. added in the operating section...

Finance
1.2K views

Read the scenarios below for the year ending 28 February 2023 and answer the following...