View the step-by-step solution to:

I have an exam today and she sent us this question and we need to make sure we know how to do it. I need this EXPLAINED to me.

I need help with the following question. I have an exam today and she sent us this question and we need to make sure we know how to do it. I need this EXPLAINED to me. I do not know how to go about it.


On September 1st , 2017, 5th seven Bank loaned $15,000 to BobCat Inc. for one year at 6 percent interest. Under the terms of the promissory note, BobCat will repay the principal and pay one year's interest on September 30th , 2018.



Related to this note payable, what amount of operating cash payment would BobCat report on its 2017 statement of cash flow?

Related to this note payable, what amount of operating cash payment would BobCat report on its 2018 statement of cash flow?

Related to this note payable, what amount of interest expense would BobCat report on its 2017 income statement?

Related to this note payable, what amount of interest expense would BobCat report on its 2018 income statement?

  $900   $300    $600

Recently Asked Questions

Why Join Course Hero?

Course Hero has all the homework and study help you need to succeed! We’ve got course-specific notes, study guides, and practice tests along with expert tutors.

-

Educational Resources
  • -

    Study Documents

    Find the best study resources around, tagged to your specific courses. Share your own to gain free Course Hero access.

    Browse Documents
  • -

    Question & Answers

    Get one-on-one homework help from our expert tutors—available online 24/7. Ask your own questions or browse existing Q&A threads. Satisfaction guaranteed!

    Ask a Question