Zirkle Company borrowed $100,000 from Plains Bank on July 31, Year 1. The note carried a 6% interest rate with a one-year term to maturity.
Required:Show the effects of borrowing the money and the December 31, Year 1 adjustment on the accounting equation.What is the amount of interest expense for Year 1?Prepare a statement of cash flows for the Zirkle Company for Year 1.
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