Question 70 (1 point) On January 1 of this year, BigCo Lenders agrees to lend Small Co. $150,000. Small Co. signs a $150,000, 6%, 9-month loan. Interest and principal are due at maturity. Assume that Small Co. has a June 30 year-end and only adjusts its accounts annually. What entry will Small Co. make to repay the loan on September 30? A) Bank Loan Payable Interest Payable Interest Expense Cash 150,000 4,500 2,250 156,750 B) Bank Loan Payable Interest Expense Cash 150,000 2,250 152,250 C) Bank Loan Payable Interest Payable Cash 150,000 6,750 156,750 163,500 D) Bank Loan Payable Cash 163,500 Question 71 (1 point) C. Smith has invested $650,000 in a corporation and and now holds 50% of the outstanding shares. The corporation does not do well and must declare bankruptcy. What amount does C. Smith stand to lose? A) zero. B) up to $325,000. C) up to the total investment of $650,000. D) up to $650,000 plus any personal assets the creditors demand. Question 72 (1 point) Which of the following statements is true regarding depreciation? Depreciation Expense will typically will be shown on the Statement of Financial Position. The Accumulated Depreciation account has a normal debit balance. It doesn't really affect corporate performance since it is a non-cash expense. Depreciation allocates the cost of a long-lived asset to the accounting periods over which it is used. Depreciation is an asset valuation concept; that allocates cost to reflect the change in the market value of the asset