10 At the beginning of the year, your company borrows $33,600 by signing a six-year promissory note that states an annual interest rate of 9% plus principal repayments of $5,600 each year. Interest is paid at the end of the second and fourth quarters, whereas principal payments are due at the end of each year. How does this new promissory note affect the current and non-current liability amounts reported on the classified balance sheet prepared at the end of the first quarter? Multiple Choice Increase current liabilities by $6,356.00; increase non-current liabilities by $33,600 Increase current liabilities by $3,024; increase non-current liabilities by $33,600 Increase current liabilities by $6,356.00; Increase non-current liabilities by $28,000 Increase current liabilities by $756.00; Increase non-current liabilities by $33,600 11 On January 1, Melrose Manufacturing issues a 5-year bond with a face value of $10,000 and a stated interest rate of 6%. The market interest rate is 4%. The issue price of the bond was $11,056. Using the effective-interest method of amortization, the interest expense for the first year ended December 31 would be: Multiple Choice $400.00. $663.36, $442.24. $600.00