Answer:
Statement I
Statement III
Explanation:
As with any borrowing, there will be an addition to liability as the amount borrowed will have to be paid in future, thus the liability will increase by $100,000 as notes payable.
Providing services will generate income, and when provided on account, then that will create an asset accounts receivable, but will not affect the liabilities.
Accrued utilities will be adding the liabilities as are accrued and have to be paid now, thus again it will add to creditors, or expense payable.
When cash is received from customer cash as an asset increases and accounts receivable decreases by the same amount.
Correct options are:
Statement I
Statement II
