Meltinle Cheics (43 Points) Indicate the BEST answers on the San-Tron form Name 1 Houston Co borowed $20. 000 from Dalas Co on March 1, 2016. Houston is to repay the prepa and inter onMarch 1, 2017 Te interest rate is 8%lfte year-end adjustment is properly recorded, what will be the general journal entry to record accrued interest on Houston's 2016 tnancial statements? A Debit Interest Expense and Credit Inberest Payable B Debit Cash and Credit Interest Revenue ?.Debt Cash and Credit interest Payable D. No Effect Use the following to answer questions 2-3 Seattle Company issued a $90,000 note payable to the First Federal Bank on September 1, 2016.. The e camed a one-year term and a 4% interest rate Interest and principal are paid at the maturity of the note 2 The amount of interest expense appearing on the 2016 income statement would be A $1.200 ? $3.600 C. $2.400. D $7 200 3 As a result of the recognition of interest expense on December 31, 2016, A labilities will increase and retained earnings will decrease B assets and liabilities will decrease C assets wll increase and retained earnings will increase D liabilities will increase and assets will decrease 4. Use the information on January 1, 2016 to determine the effect of the following entry on the current ratio of Menendez Company Accounts payable 2,000 Cash 2,000 This transaction will A have no effect on the current ratio B cause the current ratio to increase C cause the current ratio to decrease D potentially affect the current ratio, but the direction of the change cannot be determined without more information 5. Under what condition should a class action lawsuit against a company be recognized as a liability a company's balance sheet? A. The amount can be reasonably estimated B. The outcome is probable C. The outcome is reasonably possible. D. The outcome is probable and can be reasonably estimated. Which of the following items is NOT classified as a current asset? A Land 6. B. Merchandise inventory. C. Accounts Receivable D. Cash