[The following information applies to the questions displayed below.]On January 1, Year 1, the Platte Corporation issues a 5-year note payable for $5,000. The interest rate is 5% and the annual payment of $1,156, due each December 31, includes both interest and principal.Which of the following correctly shows the effect of the issuance of the note on Platte's financial statements? Assets=Liab.+Stk.EquityRevenue?Expense=Net Inc.Stmt. ofCash FlowsA.5,000=5,000+NANA?NA=NA+FAB.5,000=5,000+NANA?NA=NA+OAC.5,000=NA+5,000NA?NA=NA+FAD.NA=5,000+(5,000)NA?5,000=(5,000)NA
A. Option A
B. Option B
C. Option C
D. Option D
Answer: A
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