Use the Following to Answer Questions

question 67

Short Answer

Use the following to answer questions
The Baltimore Company issued a $9,000 face value discount note to Bank of the Chesapeake on March 1,2016.The note carried a 5% discount rate and a one-year term to maturity.
-After accruing all interest expense due as of April 1,2016,Baltimore Company made the cash payment for the full amount due (i.e. ,principal and interest)to Bank of the Chesapeake.Select the answer that shows how the cash payment will affect Baltimore's financial statements.

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Definitions:

Federal Government

The national government of a federation, which holds the authority to govern issues that affect the entire country.

Tax Receipts

The income received by the government from taxes.

Federal Transfer Payments

Government payments transferred to individuals or states, often for assistance, without requiring direct services in return.

Tax Receipts

The revenue collected by the government through various forms of taxes.