26) Conway, Inc. borrowed $220,000 on October 1, Year 1 by signing a nine-month, 10% note payable. Interest on the note was accrued on December 31, Year 1. What is the journal entry on July 1, Year 2 when the note is paid? A) Dr. Notes Payable Dr. Interest Expense Cr. Cash 220,000 16,500 236,500 B) Dr. Notes Payable 220,000 Dr. Interest Payable 11,000 Dr. Interest Expense 5,500 Cr. Cash 236,500 Dr. Notes Payable: 220,000 Dr. Interest Payable 5,500 Dr. Interest Expense 11,000 Cr. Cash 236,500 D) Dr. Notes Payable 220,000 Dr. Interest Payable 16,500 Cr. Cash 236,500 27) The current portion of long-term debt is: A) The amount of principal that will be paid within five years B) Typically included with the long-term liabilities on the balance sheet C) Recorded as an adjusting entry D) Reclassified as a current liability on the balance sheet 28) The amount of compensation that employees actually takes home is called: A) Gross pay B) Net pay C) Total compensation D) Payroll expense 29) Employees' federal income taxes: A) Are deducted to arrive at the employees' gross pay B) Are added to arrive at the employees' net pay C) Are deducted to arrive at the employees' net pay D) Do not affect employees' take-home pay