On January 1, Year 1, the Niagara Corporation Arranges a $6,000

question 104

Multiple Choice

On January 1, Year 1, the Niagara Corporation arranges a $6,000 line of credit with the Centennial Bank. It accepted the bank's offer of 1% above the prime rate with interest payments on December 31 of each year. All borrowings and repayments are to take place on January 1 of each year.Niagara begins its loan transactions with Centennial Bank by borrowing $2,000 on January 1, Year. Which of the following answers shows the effect of this event on the financial statements?

• A) Choice A
• B) Choice B
• C) Choice C
• D) Choice D

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Algebraic Expression

A mathematical phrase that can contain ordinary numbers, letters (variables), and operators, indicating operations to be performed.

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Any item or verifiable record that is generally accepted as payment for goods and services and repayment of debts, such as banknotes and coins.