On August 1, 2022, Colombo Company's treasurer signed a note promising to pay $122,700 on December...

 

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On August 1, 2022, Colombo Company's treasurer signed a note promising to pay $122,700 on December 31, 2022. The proceeds of the note were $115,200. c. 1. Use the horizontal model to show the effects of signing the note and the receipt of the cash proceeds on August 1, 2022. Indicate the financial statement effect. 2. Use the horizontal model to show the effects of recording interest expense for the month of September. Indicate the financial statement effect. 3. Use the horizontal model to show the effects of repaying the note on December 31, 2022. Indicate the financial statement effect. Complete this question by entering your answers in the tabs below. Required C1 Required C2 Required C3 Use the horizontal model to show the effects of signing the note and the receipt of the cash proceeds on August 1, 2022. Indicate the financial statement effect. Note: Enter decreases with a minus sign to indicate a negative financial statement effect. Assets Balance Sheet Liabilities Stockholders' Equity Net Income On August 1, 2022, Colombo Company's treasurer signed a note promising to pay $122,700 on December 31, 2022. The proceeds of the note were $115,200. c. 1. Use the horizontal model to show the effects of signing the note and the receipt of the cash proceeds on August 1, 2022. Indicate the financial statement effect. 2. Use the horizontal model to show the effects of recording interest expense for the month of September. Indicate the financial statement effect. 3. Use the horizontal model to show the effects of repaying the note on December 31, 2022. Indicate the financial statement effect. Complete this question by entering your answers in the tabs below. Required C1 Required C2 Required C3 Use the horizontal model to show the effects of signing the note and the receipt of the cash proceeds on August 1, 2022. Indicate the financial statement effect. Note: Enter decreases with a minus sign to indicate a negative financial statement effect. Assets Balance Sheet Liabilities Stockholders' Equity Net Income

Answer rating: 100% (QA)

C1 Signing the Note and Receiving Cash Proceeds August 1 2022 Horizontal Model Account Increase Decr... View the full answer