Zirkle Company borrowed $100,000 from Plains Bank on July 31,2016.The note carried a 6% interest rate with a one-year term to maturity.
Required:
1)Show the effects of borrowing the money and the December 31,2016 adjustment on the accounting equation.
2)What is the amount of interest expense for 2016?
3)Prepare a statement of cash flows for the Zirkle Company for 2016.

Question

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The Answer of Zirkle Company borrowed $100,000 from Plains Bank on July 31,2016.The note carried a 6% interest rate with a one-year term to maturity.
Required:
1)Show the effects of borrowing the money and the December 31,2016 adjustment on the accounting equation.
2)What is the amount of interest expense for 2016?
3)Prepare a statement of cash flows for the Zirkle Company for 2016.

Zirkle Company Borrowed $100,000 from Plains Bank on July 31,2016