Question: The Platte Corporation issues a 5 - year note payable on January 1 , Year 1 for $ 5 , 0 0 0 . The

The Platte Corporation issues a 5-year note payable on January 1, Year 1 for $5,000. The interest rate is 5% and the annual payment of $1,156, due each December 31, includes both interest and principal.
Which of the following answers correctly shows the effect of the issuance of the note on Platte's financial statements?
Balance Sheet Income Statement Statement of Cash Flows
Assets = Liabilities + Stockholders' Equity Revenue Expense = Net Income
A.5,0005,000 NA NA NA NA 5,000 FA
B.5,0005,000 NA NA NA NA 5,000 OA
C.5,000 NA 5,000 NA NA NA 5,000 FA
D. NA 5,000(5,000) NA 5,000(5,000) NA

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