Question: Corporation borrows $ 3 0 0 , 0 0 0 from a bank on March 1 , Year 1 , by signing a 6 percent,

Corporation borrows $300,000 from a bank on March 1, Year 1, by signing a 6 percent, nine-month note for mount borrowed plus accrued interest due nine months later. On issuance date, this transaction:
Multiple Choice
increases assets and increases liabilities.
decreases assets and increases liabilities.
increases assets and decreases liabilities.
Corporation borrows $ 3 0 0 , 0 0 0 from a bank

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