On November 1, Year 1, Noble Co. borrowed $116,000 from South Bank and signed a 6%, six-month note payable, all due at maturity. The interest on this loan is stated separately.

How much must Noble pay South Bank on May 1, Year 2, when the note matures?

$116,000.

$119,480.

$117,740.

$122,960.

How much interest expense will Noble recognize on this note in Year 2?

$6,960.

$2,320.

$3,480.

$1,740.

At December 31, Year 1, Noble Co.'s overall liability for this loan amounts to:

$116,000.

$118,320.

$119,480.

$117,160.

At December 31, Year 1, the adjusting entry with respect to this note includes a:

Credit to Cash for $2,320.

Debit to Interest Expense for $2,320.

Credit to Notes Payable for $1,160.

Credit to Interest Payable for $1,160.