Issume Cain lends $1,000 to A bel and takes back a Note which matures in 1 year and the borrowing rate is 4% per annum. Multiple Cholce None of the other statements are correct If Cain prepares financial statements prior to the maturity date of the note, he will have to make an adjusting entry to set up the Interest expense incurred If the note is dishonoured on maturity then Abel will set up a recelvable for more than $1,000 If the note is paid on maturity then Abel will record $40 in Interest Income If the note is paid on maturity then Abel will record $40 in Interest expense