1) On January 1, Gemstone Company obtained a $165,000, 10-year, 7% installment note from Guarantee Bank. The note requires annual payments of $23,492, with the first payment occurring on the last day of the fiscal year. The first payment consists of interest of $11,550 and principal repayment of $11,942. The journal entry to record the issuance of the installment note for cash on January 1 would include a

a.credit to notes payable for $165,000

b.debit to interest expense for $11,550

c.debit to notes payable for $165,000

d.credit to interest payable for $11,550

2) Trading securities are

not reported on the balance sheet

reported at fair value in the balance sheet

reported at fair value on the balance sheet and as unrealized gains or losses on the income statement

reported as unrealized gains or losses on the income statement

3) Singer and McMann are partners in a business. Singer's original capital was $40,000 and McMann's was $60,000. They agree to salaries of $12,000 and $18,000 for Singer and McMann, respectively, and 10% interest on original capital. If they agree to share remaining profits and losses on a 3:2 ratio, what will McMann's share of the income be if the income for the year is $30,000?

a.$17,400

b.$18,000

c.$18,600

d.$20,000