Required Information Exercise 7-6 (Algo) Notes payable-discount basis LO 2 [The following information applies to the questions displayed below] On August 1, 2019, Colombo Co.'s treasurer signed a note promising to pay $120,600 on December 31, 2019. The proceeds of the note were $114,000 Exercise 7-6 (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, 2019. Indicate the financial statement effect. (Enter decreases with a minus sign to indicate a negative financial statement effect.) Balance Sheet Assets Stockholders Equity Het Incine Reyn Cash 114,000-Notes payable Discount on notes payable 120.000+ (0.000) c-2. Use the horizontal model to show the effects of recording interest expense for the month of September. Indicate the financial statement effect. (Use rounded discount rate calculated in part a. Enter decreases with a minus sign to Indicate a negative financial statement effect.) Assets Discount on notes payable Net income Revenues 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.) Balance Sheet Asseb abibbes Stockholders Equity Net Income Notes payable (120,600) income Statement Reveries