Notes Payable A business issued a 180-day, 8% note for $67,000 to a creditor on account. 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 Statement of Stockholders' Assets Liabilities + Income Statement Cash Flows Equity No effect = Accounts payable + Notes payable + No effect Statement of Cash Flows Income Statement No effect 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 Statement of Assets Liabilities + Stockholders' Equity Income Statement Cash Flows Cash Notes payable + Retained earnings Statement of Cash Flows Income Statement Operating Interest expense Feedback Check My Work a. The issuance of the note increases the notes payable and decreases the accounts payable. b. Assuming a 360 day year, interest is computed by multiplying the interest rate with the face amount of the note and the short-term duration of the note. Cash is equal to the face amount plus the interest paid