Notes Payable A business issued a 180-day, 8% note for $28,000 to a creditor for an accounts payable. Illustrate the effects on the accounts and financial statements of recording (a) the issuance of the note and (b) the payment of the note at maturity, including interest. If no account or activity is affected, select "No effect" from the dropdown list and leave the corresponding number entry box blank. Enter account decreases and cash outflows as negative amounts. a. Illustrate the effects on the accounts and financial statements of recording the issuance of the note. Balance Sheet Assets = Liabilities + No effect = Accounts payable + Cash X Stockholders' Equity No effect 28,000 X 28,000 0 Statement of Cash Flows Income Statement No effect 0 No effect b. Illustrate the effects on the accounts and financial statements of recording the payment of the note at maturity, including interest. Assume a 360-day year. If required, round interest expense to the nearest whole number. Balance Sheet Assets Liabilities + Stockholders' Equity Notes payable X = 29,120 X Notes payable 28,000 X No effect X 0 X Statement of Cash Flows Financing X 29,120 X Income Statement Interest expense 1,120