MCQs no need for explanation .

On December 1, Mark Company borrows $250,000 from First National Bank on a 3-month, $250,000, 6% note. The company prepares its financial statements annually .

1- What entry must Mark Company make on December 31 before financial statements are prepared?

Debit interest expense and credit interest payable of $1,250

Debit interest expense and credit interest payable of $10,000

Debit interest expense and credit interest payable of $2,500

None of the above

2- The entry by Mark Company to record payment of the note and accrued interest on March 1 is .

Debit notes payable and credit cash of $253,759

Debit notes payable $250,000 and interest payable $3,750, and credit cash of $253,750

Debit notes payable $250,000 and interest Expense $3,750, and credit cash of $253,750

None of the above