On January 1, 2014, Fleming Company borrowed $160,000 cash from the First Trust Bank by issuing a five-year 8% term note. The principal and interest are repaid by making annual payments beginning on December 31, 2014. The annual payment on the loan was $40,074.
Which choice reflects the financial statement effects of Fleming Company's cash payment on December 31, 2014?

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The Answer of On January 1, 2014, Fleming Company borrowed $160,000 cash from the First Trust Bank by issuing a five-year 8% term note. The principal and interest are repaid by making annual payments beginning on December 31, 2014. The annual payment on the loan was $40,074.
Which choice reflects the financial statement effects of Fleming Company's cash payment on December 31, 2014?

On January 1, 2014, Fleming Company Borrowed $160,000 Cash from the First