Roskos Corporation issued to Ewold Bank a two-year, $200,000, 6% interest-bearing note on August 1, 2014. Interest is paid annually on July 31. Principal and the final interest payments are to be made on July 31, 2016.
Using the financial statements model provided, indicate the effect on Roskos' financial statements of:
a) the issuance of the note payable.
b) Roskos' adjusting entry on 12/31/14.
c) the first interest payment on 7/31/15.
Include dollar amounts of increases and decreases. Also, indicate whether cash flows are operating activities, investing activities, or financing activities.

Question

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The Answer of Roskos Corporation issued to Ewold Bank a two-year, $200,000, 6% interest-bearing note on August 1, 2014. Interest is paid annually on July 31. Principal and the final interest payments are to be made on July 31, 2016.
Using the financial statements model provided, indicate the effect on Roskos' financial statements of:
a) the issuance of the note payable.
b) Roskos' adjusting entry on 12/31/14.
c) the first interest payment on 7/31/15.
Include dollar amounts of increases and decreases. Also, indicate whether cash flows are operating activities, investing activities, or financing activities.

Roskos Corporation Issued to Ewold Bank a Two-Year, $200,000, 6