600,000 Notes Payable. 12,000 Interest Expense. 636,000 Cash. 26.A current liability is a debt that can reasonably be expected to be paid a. within one year or the operating cycle, whichever is longer. b. between 6 months and 18 months. out of currently recognized revenues. d. out of cash currently on hand. C. 27. Liabilities are classified on the balance sheet as current or a. deferred. b. unearned. C. long-term. d. accrued. 28. With an interest-bearing note, the amount of assets received upon issuance of the note is generally a. equal to the note's face value. b. greater than the note's face value. C. less than the note's face value. d. equal to the note's maturity value. 29.Watunga County Bank agrees to lend Hoffman Granite Company $600,000 on January 1. Hoffman Granite Company signs a $600,000, 8%, 9-month note. What is the adjusting entry required if Hoffman Granite Company prepares financial statements on June 30? a. Interest Expense 24,000 Interest Payable 24,000 b. Interest Expense 24,000 Cash. 24,000 Interest Payable.. 24,000 C. Cash. 24,000 24,000 d. Interest Payable. ty Interest Expense 24,000 30. The partnership agreement of Alix, Gise, and Bosco provides for the following income ratio: (a) Alix, the managing partner, receives a salary allowance of $108,000, (b) each partner receives 15% interest on average capital investment, and (c) remaining net income or loss is divided equally. The average capital investments for the year were: Alix $600,000, Gise $1,200,000, and Bosco $1,800,000. If partnership net income is $540,000, the amount allocated to Alix should be a. $90,000. b. $162,000. C. $180,000. d. $198,000