Question 37 (1 point)

On October 1, 2018, Campbell Limited borrows $80,000 from Mega Bank by signing a 3-month, $80,000, 4% bank loan. Interest is due the first of each month. What adjusting entry is required at December 31, 2018?

Question 37 options:

1)	Interest Payable 800 Interest Expense 800

2)	Interest Expense 800 Interest Payable 800

3)	Interest Expense 267 Interest Payable 267

4)	Interest Expense 267 Bank Loan Payable 267

Question 38 (1 point)

On October 1, 2018, Campbell Limited borrows $80,000 from Mega Bank by signing a 3-month, $80,000, 4% bank loan. Interest is due the first of each month. The entry by Campbell Limited to record payment of the loan and accrued interest on January 1, 2019 is

Question 38 options:

1)	Bank Loan Payable 80,000 Interest Payable 800 Cash 80,800

2)	Bank Loan Payable 80,000 Interest Payable 267 Cash 80,267

3)	Bank Loan Payable 80,000 Interest Expense 800 Cash 80,800

4)	Bank Loan Payable 83,200 Cash 83,200

Question 39 (1 point)

On January 1 of this year, Gertoni Lenders agrees to lend Ester Corp. $150,000. Ester Corp. signs a $150,000, 6%, 9-month loan. Interest is due at maturity.

What entry will Ester Corp. make to repay the loan on September 30, assuming no further adjusting entries have been made since June 30?

Question 39 options:

1)	Bank Loan Payable 156,750 Cash 156,750

2)	Bank Loan Payable 150,000 Interest Payable 6,750 Cash 156,750

3)	Interest Expense 3,375 Bank Loan Payable 150,000 Cash 153,375

4)	Interest Payable 4,500 Bank Loan Payable 150,000 Interest Expense 2,250 Cash 156,750

Question 40 (1 point)

On January 1, 2018, Junction Limited, a calendar-year company, issued $160,000 of notes payable, of which $65,000 is due on January 1 for each of the next four years. The proper statement of financial position presentation on December 31, 2018, is

Question 40 options:

1)	Current Liabilities, $160,000.

2)	Non-current Liabilities, $160,000.

3)	Current Liabilities, $65,000; Non-current Liabilities, $95,000.

4)	Current Liabilities, $95,000; Non-current Liabilities, $65,000.