13. A loan payment includes which of the following? a. Principal b. Interest c. Time d. Both A&B e. All of the above 14. To pay off a $42,000.00 loan in six years, how much would we have pay off on our principal each year? a. $5,000 b. $6,000 c. $6,500 d. $7,000 15. Another name for an operating loan is what? a. Current Loan b. Notes Payable c. Demand Loan d. Long-term loan 16. Jones Farm purchased a used New Holland tractor on April 1, 2017 for $85,000. The agreement called for a $35,000 down payment, with the balance to be financed through CNH Finance, with semi-annual payments over 4 years. Jones Farm wrote a cheque for $35,050 which included the down payment and a financing fee of $50. The journal entry to record the purchase of the tractor and the related financing will include a. a credit to Machinery of $85,000 and a debit to CNH Finance loan of $50,000 b. a debit to Machinery of $85,050 and a credit to CNH Finance loan of $50,000 c. a credit to Machinery of $85,050 and a debit to CNH Finance loan of $50,000 d. a debit to Machinery of $85,000 and a credit to CNH Finance loan of $50,000 a. a debit to CNH Finance loan of $5,519.38, a credit to interest expense of $689.79, a credit to cash (bank) of $4,829.59 b. a debit to interest expense of $689.79, a debit to cash (bank) of $4,829.59, a credit to CNH Finance loan of $5,519.38 c. a debit to cash (bank) of $5,519.38, a credit to interest expense of $689.79, a credit to CNH Finance loan of $4,829.59 d. a debit to interest expense of $689.79, a debit to CNH Finance loan of $4,829.59, a credit to cash (bank) of $5,519.38 13. A loan payment includes which of the following? a. Principal b. Interest c. Time d. Both A&B e. All of the above 14. To pay off a $42,000.00 loan in six years, how much would we have pay off on our principal each year? a. $5,000 b. $6,000 c. $6,500 d. $7,000 15. Another name for an operating loan is what? a. Current Loan b. Notes Payable c. Demand Loan d. Long-term loan 16. Jones Farm purchased a used New Holland tractor on April 1, 2017 for $85,000. The agreement called for a $35,000 down payment, with the balance to be financed through CNH Finance, with semi-annual payments over 4 years. Jones Farm wrote a cheque for $35,050 which included the down payment and a financing fee of $50. The journal entry to record the purchase of the tractor and the related financing will include a. a credit to Machinery of $85,000 and a debit to CNH Finance loan of $50,000 b. a debit to Machinery of $85,050 and a credit to CNH Finance loan of $50,000 c. a credit to Machinery of $85,050 and a debit to CNH Finance loan of $50,000 d. a debit to Machinery of $85,000 and a credit to CNH Finance loan of $50,000 a. a debit to CNH Finance loan of $5,519.38, a credit to interest expense of $689.79, a credit to cash (bank) of $4,829.59 b. a debit to interest expense of $689.79, a debit to cash (bank) of $4,829.59, a credit to CNH Finance loan of $5,519.38 c. a debit to cash (bank) of $5,519.38, a credit to interest expense of $689.79, a credit to CNH Finance loan of $4,829.59 d. a debit to interest expense of $689.79, a debit to CNH Finance loan of $4,829.59, a credit to cash (bank) of $5,519.38