Knowledge Check 01 On January 1, Year 1, a company borrows $50,000 with the promise to repay the amount plus interest in two years (on January 1, Year 3). Which of the following statements about this loan are true? (You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer. Any boxes left with a question mark will be automatically graded as incorrect.) 1 The company reports only the accrued interest on the loan as a current liability in the balance sheet prepared as of December 31, Year 1. The company reports principal and the accrued interest on the loan as a current liability in the balance sheet prepared as of December 31, Year 1. 7 The Current Portion of Long-Term Debt account balance will equal $50,000 at December 31, Year 1. The Long-Term Debt account balance will equal $50,000 at December 31, Year 1