Required information

Exercise $7-8($Algo$)$ Notes payable$-$discount basis LO $7-2$

$[$The following informatlon applies to the questlons displayed below.$]$

On August $1,2022,$ Colombo Company's treasurer signed a note promising to pay $$122,700$ on December $31,2022.$ The proceeds of the note were $$116,400.$

Exercise $7-8($Algo$)$ Part c $-$ Horizontal model

c$.1.$ Use the horizontal model to show the effects of signing the note and the receipt of the cash proceeds on August $1,2022.$ Indicate the financlal statement effect.

$2.$ Use the horizontal model to show the effects of recording interest expense for the month of September. Indicate the financial statement effect.

$3.$ Use the horizontal model to show the effects of repaying the note on December $31,2022.$ Indicate the financial statement effect.

Complete this question by entering your answers in the tabs below.

Required C$1$

Use the horizontal model to show the effects of recording interest expense for the month of September. Indlicate the financial statement effect.

Note: Use rounded discount rate calculated in part a$.$ Enter decreases with a minus sign to indicate a negative financial statement effect.

$\backslash$table$[[,$Income Statement$],[larr,$Net Income,$=,$Revenues,$-,,],[$Assets$,=,$Balance Sheet

Llabilities,$+,$Stockhoiders Equity,larr,Netincome,$=,,,$Interest expense,$1,261],[$Discount on notes payable,$(1,261),+,,$larr,,$-,,,,]]$

Required C$1$