On August 1, Year 1 Gin Company borrowed $50,000 cash. The o…

Written by Anonymous on November 29, 2025 in Uncategorized with no comments.

Questions

On August 1, Yeаr 1 Gin Cоmpаny bоrrоwed $50,000 cаsh. The one-year note carried a 6% rate of interest. Which of the following shows how the accrual of interest expense in Year 1 will affect Gin’s financial statements? Balance Sheet Income Statement Statement of Cash Flows Assets = Liabilities + Stockholders' Equity Revenue − Expense = Net Income A. NA = 1,250 + (1,250) NA − 1,250 = (1,250) NA B. NA = 1,250 + (1,250) NA − 1,250 = (1,250) 1,250 IA C. (1,750) = (1,750) + NA NA − NA = NA (1,750) IA D. NA = 1,750 + (1,750) NA − 1,750 = (1,750) NA  

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