Chester Company began Year 2 with a note payable of $20,000 and interest payable of $800. During the year, the company accrued an additional $400 of interest expense, and paid off the note with interest. On the company's Year 2 statement of cash flows, cash flows for financing activities related to the note would be:
A)$1,200 outflow
B)$20,000 outflow
C)$20,400 outflow
D)$21,200 outflow

Question

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The Answer of Chester Company began Year 2 with a note payable of $20,000 and interest payable of $800. During the year, the company accrued an additional $400 of interest expense, and paid off the note with interest. On the company's Year 2 statement of cash flows, cash flows for financing activities related to the note would be:
A)$1,200 outflow
B)$20,000 outflow
C)$20,400 outflow
D)$21,200 outflow

Chester Company Began Year 2 with a Note Payable of $20,000