On January 1, a business borrowed $ 12,000 on a five-year, 9%note payable. At December 31,2016

the business should record

A.interest payable of $ 1 comma 080

.

B.note receivable of$ 12 comma 000

.

C.cash payment of $ 12 comma 000

.

D. nothing. (The note is already on the books.

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Jade Larson Antiques owes $20,000 on a truck purchased for use in the business. Assume the company makes timely principal payments of $5,000 each year at December 31 plus interest at 8%. Which of the following is true?

After the first payment is made, $5,000 would be shown as the current portion due on the long-term note.

B.

After the first payment, $15,000 would be shown as a long-term liability.

C.

Just before the last payment is made, $5,000 will appear as a long-term liability on the balance sheet.

D.

After the first payment is made, the company owes $15,000 plus three years' interest.

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Swell Company has a lawsuit pending from a customer claiming damages of $100,000. Swell's attorney advises that the likelihood the customer will win is remote.

A. disclosed in the footnotes.

B.

disclosed in the footnotes, with ranges of potential loss.

C.

No disclosure is required.

D.

recorded as a journal entry, as well as disclosed in the footnotes.