On January 1, Year 1, Echols Company borrowed $100,000 cash from Sun Bank by issuing a 5-year, 8% term note. The principal and interest are repaid by making annual payments beginning on December 31, Year 1. The annual payment on the loan equals $25,045.65.Which of the following shows how the borrowing of cash from Sun Bank on January 1, Year 1, affects the financial statements?

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The Answer of On January 1, Year 1, Echols Company borrowed $100,000 cash from Sun Bank by issuing a 5-year, 8% term note. The principal and interest are repaid by making annual payments beginning on December 31, Year 1. The annual payment on the loan equals $25,045.65.Which of the following shows how the borrowing of cash from Sun Bank on January 1, Year 1, affects the financial statements?

On January 1, Year 1, Echols Company Borrowed $100,000 Cash