All transactions involving notes payable and related accounts of Rek Company during 2011 are recorded as follows:

Determine the amounts of the transactions affecting financing activities and show how they are to appear on the statement of cash flows for 2011.

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Cash 36,000 Notes Payable Bank loar 36,000 Patent 60,000 Notes Payable 60,000 Purchase of patent by issuing note payable Notes Payable Interest Expense 10,000 1,000 Cash 11,000 Repayment of note payable at maturity