7. Swifty Corporation's salaried employees are paid biweekly. Occasionally, advances made to employees are paid back by payroll deductions. Information relating to salaries for the calendar year 2021 is as follows:

		12/31/20		12/31/21
Employee advances		$	25000		$	34000
Accrued salaries payable			160000			?
Salaries expense during the year						1380000
Salaries paid during the year (gross)						1230000

At December 31, 2021, what amount should Swifty report for accrued salaries payable?

$150000.

$126000.

$169000.

$310000.

8.On September 1, 2020, Sheffield Corp. issued a note payable to Fidelity Bank in the amount of $2742000, bearing interest at 12%, and payable in three equal annual principal payments of $914000. On this date, the bank's prime rate was 13%. The first payment for interest and principal was made on September 1, 2021. At December 31, 2021, Sheffield should record accrued interest payable of

$73120.

$109680.

$237640.

$118820.

9. If bonds are initially sold at a discount and the straight-line method of amortization is used, interest expense in the earlier years will

exceed what it would have been had the effective-interest method of amortization been used.

be the same as what it would have been had the effective-interest method of amortization been used.

be less than what it would have been had the effective-interest method of amortization been used.

be less than the stated (nominal) rate of interest.