Question 1 part A and B

A. Universal Travel Inc. borrowed $492,000 on November 1, 2018, and signed a 12-month note bearing interest at 6%. Interest is payable in full at maturity on October 31, 2019. In connection with this note, Universal Travel Inc. should report interest payable at December 31, 2018, in the amount of:

Multiple Choice

• $29,520.

• $19,680.

• $4,920.

• $24,600.

B. On January 1, 2018, G Corporation agreed to grant all its employees two weeks paid vacation each year, with the stipulation that vacations earned each year can be taken the following year. For the year ended December 31, 2018, G's employees each earned an average of $770 per week. A total of 520 vacation weeks earned in 2018 were not taken during 2018. Wage rates for employees rose by an average of 8 percent by the time vacations actually were taken in 2019. What is the amount of G's 2019 wages expense related to 2018 vacation time?

Multiple Choice

• $432,432.

• $0.

• $400,400.

• $32,032.