On november 1, year 1 cove company borrowed $7,000 cash from shelter company. the one-year note carried a 7% rate of interest.
which of the following shows how the loan will affect cove’s financial statements on november 1, year 1?

a) balance sheet income statement statement of cash flows
assets = liab. + equity rev. - exp. = net inc. (7,000) ia
/na /na / na /na /na /na

b) balance sheet income statement statement of cash flows
assets = liab. + equity rev. - exp. = net inc. (7,000) fa
/na /na /na /na /na /na

c) balance sheet income statement statement of cash flows
assets = liab. + equity rev. - exp. = net inc. 7,000 fa
/7000 /7000 /na /na /na /na

d) balance sheet income statement statement of cash flows
assets = liab. + equity rev. - exp. = net inc. (7,000) ia /(7000) /(7000) /na /na /na /na

What happens when a bank is required to hold more money in reserve?

Annuity payments are assumed to come at the end of each payment period (termed an ordinary annuity). however, an exception occurs when the annuity payments come at the beginning of each period (termed an annuity due). what is the future value of a 13-year annuity of $2,800 per period where payments come at the beginning of each period? the interest rate is 9 percent. use appendix c for an approximate answer, but calculate your final answer using the formula and financial calculator methods. to find the future value of an annuity due when using the appendix tables, add 1 to n and subtract 1 from the tabular value. for example, to find the future value of a $100 payment at the beginning of each period for five periods at 10 percent, go to appendix c for n = 6 and i = 10 percent. look up the value of 7.716 and subtract 1 from it for an answer of 6.716 or $671.60 ($100 × 6.716)

The following transactions occur for badger biking company during the month of june: a. provide services to customers on account for $32,000. b. receive cash of $24,000 from customers in (a) above. c. purchase bike equipment by signing a note with the bank for $17,000. d. pay utilities of $3,200 for the current month. analyze each transaction and indicate the amount of increases and decreases in the accounting equation. (decreases to account classifications should be entered as a negative.)