Business, 14.05.2021 17:00 andrew6494

On July 1, 2019, Goode Company borrowed $110,000. The company signed a note payable with interest at 4 percent per year. The note and interest are due on December 31, 2019. On December 31, 2019, Goode paid $112,200 to settle the debt in full. Assuming no accruals for interest have been made during the year, transaction analysis of the $112,200 cash payment on December 31, 2019 should reflect which of the following? a. A decrease in assets of $103,000 and a decrease in liabilities of $103,000.
b. A decrease in assets of $100,000, a decrease in stockholders’ equity of $3,000, and a decrease in liabilities of $103,000.
c. A decrease in stockholders’ equity of $100,000, a decrease in liabilities of $3,000, and a decrease in assets of $103,000.
d. A decrease in liabilities of $100,000, a decrease in stockholders’ equity of $3,000, and a decrease in assets of $103,000.

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On July 1, 2019, Goode Company borrowed $110,000. The company signed a note payable with interest at...

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