On July 1, 2014, Falcon Company received a $20,000 promissory note for services from Jordyn Company. The annual interest rate is 5%. Principal and interest are paid in cash at the maturity date of June 30, 2013. The effect on Falcon's financial statements on July 1, 2014 is as follows
a. Assets increase? owners' equity increases
b. Assets decrease and owners' equity decreases
c. Assets decrease
d. No net change in assets
a
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