b. The efficient use of assets c. The company's liquidity d. The company's profitability 1, 2018. What amount is the note payable recorded at on October 1, 2017 and how much interest is recognized from October 1 to December 31, 2017? 21. Craig borrowed $700,000 on October 1, 2017 and is required to pay $720,000 on March a. $700,000 and $o b $700,000 and $12,000 c. $720,000 and $0 d $700,000 and $20,000 22. Venible newspapers sold 6,000 of annual subscriptions at $150 each on June 1. How much unearned revenue will exist as of December 31? a, $0 b. $375,000 c. $450,000. d. $900,000. 23 On December 31, 2017, Isle Co. has $6,000,000 of short-term notes payable due on Beach Bank February 14, 2018. On January 10, 2016, Isle arranged a line of credit with which allows Isle to borrow up to $4,500,000 at one percent above the prime rate for three years. On February 2, 2018, Isle borrowed $3,600,000 from Beach Bank and used $1,500,000 additional cash to liquidate $5,100,000 of the short-term notes payable. The amount of the short-term notes payable that should be reported as current liabilities on the December 31, 2017 balance sheet which is issued on March 5, 2018 is a.S0 b. $900,000. . $1,500,000. d. $2,400,000. 24. Qualpoint pays a weekly payroll of $255,000 that includes federal taxes withheld of $38,100, FICA taxes withheld of $23,670, and 401(k) withholdings of $27,000. What is the effect of assets and liabilities from this transaction? a. Assets decrease $255,000 and liabilities do not change. b. Assets decrease $193,230 and liabilities increase $61,770. c. Assets decrease $193,230 and liabilities decrease $61,770 d. Assets decrease $166,230 and liabilities increase $88,770 25. Composite provides extended service contracts on electronic equipment sold through major retailers. The standard contract is for four years. During the current Composite provided 42,000 such warranty contracts at an average price of $162 each. Related to these contracts, the company spent $800,000 servicing the contracts during the current year and expects to spend $4,200,000 more in the future. What is the net profit that the company will recognize in the current year related to these contracts? a. $1,804 b. $6,004,000 c. $800,000 d. $901,000