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How much of the cash paid in relates to interest expense

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On May 31, 20Y1 KAC Inc. borrowed $300,000 by issuing a 4-year, 6% promissory note. Interest is payable annually.

Problem 1: How much of the cash paid in 20Y2 relates to 20Y2 interest expense?

Problem 2: What is the total 20Y2 impact on the accounting equation? Indicate the impact by entering "I" for Increase, "D" for Decrease and "NE" for No Effect.

Reference no: EM132686183

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