Belize Company borrowed $25,000 from First National Bank on July 1, 2013. The note carried a 5% interest rate with a one-year term to maturity.
Required:
1) Show the effects of borrowing the money and the December 31, 2013 adjustment on the accounting equation.
2) What is the amount of interest expense for 2013?
3) Prepare a statement of cash flows for the Belize Company for 2013.

Question

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The Answer of Belize Company borrowed $25,000 from First National Bank on July 1, 2013. The note carried a 5% interest rate with a one-year term to maturity.
Required:
1) Show the effects of borrowing the money and the December 31, 2013 adjustment on the accounting equation.
2) What is the amount of interest expense for 2013?
3) Prepare a statement of cash flows for the Belize Company for 2013.

Belize Company Borrowed $25,000 from First National Bank on July