1. On November 1, Year 1, Noble Company borrowed $68,000 from South Bank and signed a 9%, six-month note payable, all due at maturity. The interest on this loan is stated separately. At December 31, Year 1, Noble Company's overall liability for this loan amounts to:

• 68,000.

• $69,020.

• $71,060.

• $70,040.

2.

On November 1, Year 1, Noble Company borrowed $92,000 from South Bank and signed a 6%, six-month note payable, all due at maturity. The interest on this loan is stated separately.

At December 31, Year 1, the adjusting entry with respect to this note includes a

• Credit to Cash for $1,840.

• Credit to Notes Payable for $920.

• Debit to Interest Expense for $1,840.

• Credit to Interest Payable for $920.