Use the Following to Answer Questions

question 67

Short Answer

Use the following to answer questions
On January 1,2016,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 1,2016.Which of the following answers shows the effect of this event on the financial statements?

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Definitions:

Birth Defects

Conditions that are present at birth and can affect the structure or function of the body, ranging from mild to severe.

Preventable Cause

A factor that can be modified or avoided to reduce the likelihood of an adverse health event or condition.

Neurotoxicants

Substances that are poisonous or harmful to the nervous system, potentially causing damage to nerve tissue.

Birth Defects

Abnormalities of structure, function, or metabolism present at birth that result in physical or mental disability or are otherwise harmful to the individual.