Question: On August 1, 2019, Colombo Co.'s treasurer signed a note promising to pay $2,400,000 on December 31, 2019. The proceeds of the note were $2,340,000.

On August 1, 2019, Colombo Co.'s treasurer signed a note promising to pay $2,400,000 on December 31, 2019. The proceeds of the note were $2,340,000.

c-1. Use the horizontal model to show the effects of signing the note and the receipt of the cash proceeds on August 1, 2019.Indicate the financial statement effect. (Enter decreases with a minus sign to indicate a negative financial statement effect.)

c-2. Use the horizontal model to show the effects of recording interest expense for the month of September. Indicate the financial statement effect.(Enter decreases with a minus sign to indicate a negative financial statement effect. Use rounded discount rate calculated in part a.) c-3. Use the horizontal model to show the effects of repaying the note on December 31, 2019. Indicate the financial statement effect. (Enter decreases with a minus sign to indicate a negative financial statement effect.)

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