Question: Company A borrows $ 1 0 0 , 0 0 0 from Company Z on July 1 , 2 0 2 1 . The loan

Company A borrows $100,000 from Company Z on July 1,2021.The loan is a 1 year loan with repayment due on June 30,2022.The annual interest rate for the loan is 12%.
Assuming that all entries are made correctly on July 1,2021, December 31,2021(the date of the company's annual financial statements), and on June 30,2022 when Company A pays off the loan, what is the impact on cash flows and on the income statement in 2022to Company A as a result of the above events?

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