Chico Company Borrowed $40,000 on a Four-Year,8% Installment Note

question 57

Multiple Choice

Chico Company borrowed $40,000 on a four-year,8% installment note.How will this transaction affect Chicos financial statements?

• A) Cash and installment notes payable increase by $43,200
• B) Cash and interest payable increase by $40,000
• C) Cash and interest payable increase by $43,200
• D) Cash and installment notes payable increase by $40,000

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