Question 1 (1 point) What is the appropriate way to report an installment note payable (assuming monthly payments) in a classified balance sheet? The entire installment note is reported as a current liability. The amount due in more than one year is reported as a current liability. The entire installment note is reported as a long-term liability, The amount due within 1 year is reported as a current liability. Question 2 (1 point) When recording journal entries for the company making the payments on installment notes payable, interest expense is credited. interest revenue is credited. cash is debited. notes payable is debited. Question 3 (1 point) A company purchased new equipment for $31,000 with a two-year installment note requiring 5% interest. The required monthly payment is $1,360. Rounding to the nearest dollar, the journal entry for the first payment is Debit Cash, $1,360; credit Notes payable, $129; credit Interest expense $1,231. Debit Notes payable, $129; debit Interest expense, $1,231; credit Cash, $1,360. Debit Interest expense, $129; debit Notes payable $1,231; Credit Cash, $1,360. 0 Debit Cash, $1,360; credit Interest expense, $129; credit Notes payable $1,231. Question 4 (1 point) A company purchased new equipment for $31,000 with a two-year installment note requiring 5% interest. The required monthly payment is $1,360. For the first month's payment, what is the amount to record for interest expense? $155. $120. $68. O$129. Question 5 (1 point) Which of the following statements about installment notes payable is correct? The amount of loan reduction included in each payment decreases as more payments are made. The interest expense on the installment note decreases as more payments are made. The amount of amount of interest included in the payment is not related to the amount owed on the note payable. The amount of interest decreases over the life of the note payable, but the amount of the loan balance stays the same. Question 6 (1 point) A company purchased new equipment for $31,000 with a two-year installment note requiring 5% interest. The required monthly payment is $1,360. After the first month's payment, what is the balance of the note? $29,769. $30,723. $29,640. $30,871