1. On November 1, 2024, a company signed a $114,000, 4%, six-month note payable with the amount borrowed plus accrued interest due six months later on May 1, 2025. The company recorded accrued interest on December 31, 2024. The payment of the note and interest on May 1, 2025, causes assets to decrease by $116,280 and which of the following? (Do not round your intermediate calculations.)

Multiple Choice

Liabilities to decrease by $116,280.

Liabilities to decrease by $117,040 and stockholders equity to decrease by $1,520.

Liabilities to decrease by $114,000 and stockholders equity to decrease by $4,560.

Liabilities to decrease by $114,760 and stockholders equity to decrease by $1,520.

2.On November 1, 2024, a company signed a $100,000, 6%, six-month note payable with the amount borrowed plus accrued interest due six months later on May 1, 2025. The company recorded accrued interest on December 31, 2024. The payment of the note and interest on May 1, 2025, causes assets to decrease by $103,000 and which of the following? (Do not round your intermediate calculations.)

Liabilities to decrease by $106,000.

Liabilities to decrease by $100,000 and stockholders equity to decrease by $6,000.

Liabilities to decrease by $104,000 and stockholders equity to decrease by $2,000.

Liabilities to decrease by $101,000 and stockholders equity to decrease by $2,000.

3.On September 1, 2024, Daylight Donuts signed a $120,000, 9%, six-month note payable with the amount borrowed plus accrued interest due six months later on March 1, 2025. Daylight Donuts accrued interest for the note on December 31, 2024. Which of the following would be recorded on the payment of the note plus accrued interest at maturity on March 1, 2025? (Do not round your intermediate calculations.)