Answer Happy

Question 11 Fain Corporation paid principal and interest on a 6-month, 8% note payable with a face amount of $5,000. How did this transaction affect Fain's financial statements? Choice A: Cash decreases by $5,200, Notes Payable decreases by $5,000, Interest Payable increases by $200, Stockholder's Equity decreases by $200 and Net Income decreases by $200 Choice B: Cash decreases by $5,400, Notes Payable decreases by $5,000, Stockholder's Equity decreases by $400 and Net Income decreases by $400 3.57 pts Choice C: Cash decreases by $5,200, Notes Payable decreases by $5,000, Stockholder's Equity decreases by $200 and Net Income decreases by $200 Choice D: None of the choices given are correct. O Choice D O Choice B O Choice A Choice C