Saba Company borrowed $10,000 from the bank by issuing a promissory note on June 1, 2014. The note had a one-year term and a 6 percent annual interest rate. On December 31, 2014, Saba accrued the interest on the note.
Required:
Show how the issuance of the note and accrual of interest affect the financial statements by using the horizontal model provided. Indicate the dollar amount of increases and decreases; enter NA if an item is not affected. In the cash flows column, designate cash flows as operating activities (OA), investing activities (IA. or financing activities (F

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The Answer of Saba Company borrowed $10,000 from the bank by issuing a promissory note on June 1, 2014. The note had a one-year term and a 6 percent annual interest rate. On December 31, 2014, Saba accrued the interest on the note.
Required:
Show how the issuance of the note and accrual of interest affect the financial statements by using the horizontal model provided. Indicate the dollar amount of increases and decreases; enter NA if an item is not affected. In the cash flows column, designate cash flows as operating activities (OA), investing activities (IA. or financing activities (F

Saba Company Borrowed $10,000 from the Bank by Issuing a Promissory