60.Refer to the information above. At December 31, Year 1, Noble Co.'s overall liability for this loan amounts to:
A. $80,000.
B. $81,600.
C. $83,200.
D. $84,800.
61.Refer to the information above. At December 31, Year 1, the adjusting entry with respect to this note includes a:
A. Credit to Interest Payable for $1,600.
B. Credit to Notes Payable for $1,600.
C. Debit to Interest Expense for $3,200.
D. Credit to Cash for $3,200.
62.Refer to the information above. How much must Able pay Regal Corporation on September 1, 2016, when the note matures?
A. $600,000.
B. $618,000.
C. $654,000.
D. Some other amount.
63.Refer to the information above. What is the amount of the interest expense Able will recognize on this note in 2016?
A. $18,000.
B. $31,500.
C. $36,000.
D. $54,000.
64.Refer to the information above. What is the total cash (including interest) paid for the building purchased by Able?
A. $800,000.
B. $836,000.
C. $854,000.
D. $816,000.
65.Refer to the information above. The adjusting entry at December 31, 2015, with respect to this note included:
A. A debit to Interest Expense for $18,000.
B. A credit to Cash for $18,000.
C. A credit to Notes Payable for $18,000.
D. A credit to Interest Expense for $18,000.
A. $600,000.
B. $624,000.
C. $636,000.
D. $672,000.
67.Refer to the information above. Assume Select made no adjusting entry with respect to this note before preparing the financial statements at December 31, 2015. What is the effect of this error on the financial statements for 2015?
A. Total liabilities are overstated.
B. Net income is overstated.
C. Owners' equity is understated.
D. Interest Payable is overstated.
68.Sanford Corporation borrowed $90,000 by issuing a 12%, six-month note payable, all due at the maturity date. After one month, the company's total liability for this loan amounts to:
A. $90,000.
B. $90,450.
C. $90,900.
D. $91,800.
69.On November 1 of the current year, Garcia Company borrowed $50,000 by issuing a 9%, six-month note payable, all due at maturity date. Interest expense on this note to be recognized during the current year amounts to:
A. $500.
B. $750.
C. $1,500.
D. $4,500.