On October $1,2018,$ a business borrowed $$18,000$ on a $5-$year, $6\%$ note payable. The loan required the business to pay principal and interest at the end of the $-$year term.

On December $31,2018,$ what is the amount accrued interest payable the business should record?

a$.$ $$270$

b$.$ $$1,080$

c$.$ $$18,000$

d$.$ No journal entry required

A company sells $$180,000($sales price$)$ of goods and collects sales tax of $8\%.$ What current liability does the sale create?

a$.$ Sales Tax Payable, $$14,400$

b$.$ Sales Revenue, $$194,400$

c$.$ Unearned Revenue, $$14,400$

d$.$No current liability was created

A company purchases equipment with a $$20,000$ note payable. The note is to be paid in $$5,000$ annual installments $($plus interest$)$ over the next $4$ years. How is the note reported on the Balance Sheet?

a$.$ Notes Payable $($current portion$)--$$$5,000,$ and Notes Payable $($long$-$term portion$)--$$$15,000$

b$.$ Notes Payable $($Long$-$term Liability$)--$$$20,000$

c$.$ Equipment$--$$$15,000,$ Accumulated Depreciation$--$$$5,000$

d$.$ This transaction would not affect the Balance Sheet