1. When the income statement columns of the December 31, 2019, work sheet of Hogue Corporation were initially subtotaled, the debit and credit entries had balances of $24,750 and $38,750, respectively, before income taxes were recorded. If the appropriate tax rate for Hogue Corporation is 30 percent, the 2019 income tax expense would be

a. $9,800 b. $4,200 c. $11,625 d. $3,600

2. On October 1, Woods Sporting Supplies, a calendar-year company, sold inventory that cost $30,000 for $50,000. The customer signed a four-month, 15 percent note in payment. On December 31, Woods should

1. Debit Interest Receivable for $1,875
2. Debit Interest Revenue for $1,875
3. Credit Interest Revenue for $7,500
4. Debit Interest Receivable for $7,500