On July 1, 2016, Goode Company borrowed $140,000. The company signed a note payable with...
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On July 1, 2016, Goode Company borrowed $140,000. The company signed a note payable with interest at 7 percent per year. The note and interest are due on December 31, 2016. On December 31, 2016, Goode paid $144,900 to settle the debt in full. Assuming no accruals for interest have been made during the year, transaction analysis of the $144,900 cash payment on December 31, 2016 should reflect which of the following?
A decrease in liabilities of $140,000, a decrease in stockholders' equity of $4,900 and a decrease in assets of $144,900.
A decrease in stockholders' equity of $140,000, a decrease in liabilities of $4,900, and a decrease in assets of $144,900.
A decrease in assets of $140,000, a decrease in stockholders' equity of $4,900, and a decrease in liabilities of $144,900.
A decrease in assets of $144,900 and a decrease in liabilities of $144,900.
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