On January 1,2016,Carlyle Corporation issued a five-year term note.The note requires an annual cash payment on December 31 of each year.The payment includes a principal reduction and interest.Indicate whether each of the following statements is true or false.
_____ a)The entry to record issuance of the note will increase assets and liabilities.
_____ b)The first payment on the note will reduce liabilities and assets,but will not affect equity.
_____ c)The second payment on the note will include higher interest expense than did the first payment.
_____ d)Each payment on the note includes a cash flow from operating activities and a cash flow from financing activities.
_____ e)The amount of reduction in liabilities will increase with each succeeding payment.

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The Answer of On January 1,2016,Carlyle Corporation issued a five-year term note.The note requires an annual cash payment on December 31 of each year.The payment includes a principal reduction and interest.Indicate whether each of the following statements is true or false.
_____ a)The entry to record issuance of the note will increase assets and liabilities.
_____ b)The first payment on the note will reduce liabilities and assets,but will not affect equity.
_____ c)The second payment on the note will include higher interest expense than did the first payment.
_____ d)Each payment on the note includes a cash flow from operating activities and a cash flow from financing activities.
_____ e)The amount of reduction in liabilities will increase with each succeeding payment.

On January 1,2016,Carlyle Corporation Issued a Five-Year Term Note