On November 1, xxl, the company issued an interest-bearing note payable to Credit Union. The principal amount was $22,200, a six-months term, and an annual interest of 12% (4 points) 8. Determine the amount of interest expense for the first year xxx1. a) $444 b) $2,664 c) $222 You MUST show your calculations: (4 points) 9. Determine the amount of interest expense for the second year xxx2. a) $888 b) $1,332 c) $444 You MUST show your calculations: MAM company begun operations in xox1. Its sales were $150,000 in year xoo1, and $175,000 in year 2002. The company prepared estimates assuming the 5% of sales will be the warranty costs for one-year. (4 points) 10. Determine the warranty expense on December 31, xxx1 in the Income Statement. a) $16,250 b) $7,500 c) $8,750 You MUST show your calculations: (4 points) 11. Determine the warranty expense on December 31, xxx2 in the Income Statement. a) $16,250 b) $7,500 c) $8,750 YOU MUST show your calculations