Saba Company borrowed $10,000 from the bank by issuing a promissory note on June 1,2012.The note had a one-year term and a 6 percent annual interest rate.On December 31,2012,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 1,2012.The note had a one-year term and a 6 percent annual interest rate.On December 31,2012,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