Babble Co. signs a five-year installment note on January 1, 2021. At which of the following dates would the carrying value be the lowest?

A) August 1, 2021

B) November 30, 2023

C) April 30, 2024

D) December 31, 2022

Answer: C

The entry to record a monthly payment on an installment note such as a car loan:

A) Increases expenses, decreases liabilities, and decreases assets.

B) Increases expenses, increases liabilities, and increases assets.

C) Increases expenses, decreases liabilities, and increases assets.

D) Increases expenses, increases liabilities, and decreases assets.

Answer: A