The Platte Corporation issues a 5 year note payable on January 1, 2016 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 shows the effect of the December 31, 2016 payment Assets Liab Equity Revenue Expense Net Inc Cash Flow A (1,156) (1,156) NA NA NA NA (1,156)FA B (1,156) (906) (250) NA 250 (250) (906)FA (250)OA C (1,156) NA (1,156) NA 1,156 (1,156) (1,156)OA D (1,156) (906) (250) NA 250 (250) (1,156)FA 2 Rosewood Company made a loan of $7,600 to one of the company's employees on April 1, 2016 The one year note carried a 6 rate of interest The amount of interest revenue that Rosewood would report in 2016 and 2017, respectively would be

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Question: The Platte Corporation issues a 5-year note payable on January 1, 2016 for $5,000. The interest rate is 5% and the annual payment of $1,156,

The Platte Corporation issues a 5-year note payable on January 1, 2016 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 shows the effect of the December 31, 2016 payment?

	Assets	=	Liab	+	Equity	Revenue	-	Expense	=	Net Inc	Cash Flow
A.	(1,156)	=	(1,156)	+	NA	NA	-	NA	=	NA	(1,156)FA
B.	(1,156)	=	(906)	+	(250)	NA	-	250	=	(250)	(906)FA/(250)OA
C.	(1,156)	=	NA	+	(1,156)	NA	-	1,156	=	(1,156)	(1,156)OA
D.	(1,156)	=	(906)	+	(250)	NA	-	250	=	(250)	(1,156)FA

Rosewood Company made a loan of $7,600 to one of the company's employees on April 1, 2016. The one-year note carried a 6% rate of interest. The amount of interest revenue that Rosewood would report in 2016 and 2017, respectively would be:

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