On October 1, Sam's Painting Service borrows $100,000 from National Bank on a 3-month, $100,000, 4% note. What entry must Sam's Painting Service make on December 31 before financial statements are prepared? 1,000 Interest Payable Interest Expense 1,000 4,000 Interest Expense Interest Payable 4,000 1,000 Interest Expense Interest Payable 1,000 1,000 Interest Expense Notes Payable 1,000 If the market rate of interest is 10%, a $10,000, 12%, 10-year bond that pays interest annually would sell at an amount less than face value. equal to face value. greater than face value. that cannot be determined