Required information Exercise 7-7 (Algo) Notes payable-discount basis LO 7-2 [The following information applies to the questions displayed below.] On May 15, 2022, Powell Incorporated obtained a six-month working capital loan from its bank. The face amount of the note signed by the treasurer was $294,400. The interest rate charged by the bank was 8.75%. The bank made the loan on a discount basis. Exercise 7-7 (Algo) Part a Horizontal model a-2. Use the horizontal model to show the effect of signing the note and the receipt of the cash proceeds on May 15, 2022. Indicate the financial statement effect. Note: Enter decreases with a minus sign to indicate a negative financial statement effect. Assets Balance Sheet Liabilities + Stockholders' Equity Net Income