Quiz Instructions During the year, ABC inc, borrowed one loan as follows: Loan 1: 9/1/2020$100,000 at 8% annual interest rate for 7 months from Bank of America (BOA). What are the Journal Entries for ABC and BOA assuming the principle and interest is due at maturity 1. Issuing the loan 2. December 31 st end of thcir accounting cycle 3. At the maturity of the loan, pay off. After solving it on paper, answer the following questions. What will happen if ABC Inc. does not do adjusting entries on 12/31/2020? - Expenses will be understated. - Net income will be overstated. - Liability will be overstated. - Retained Earnings will be understated. - Expenses will be understated. - Net income will be understated. - Liability will be understated. - Retained Eamings will be overstated. - Expenses will be understated. - Net income will be overstated. - Liability will be understated. - Retained Earnings will be overstated. - Expenses will be overstated. - Net income will be overstated. - Liability will be understated. - Retained Earnings will be understated. What will happen if BOA does not do adjusting entries on 12/31/2020 ? - Expenses will be understated. - Net income will be overstated. - Llability will be understated. - Retained Earnings will be overstated. - Revenue will be understated. - Net income will be understated. - Asset will be understated. - Retained Eamings will be understated. - Revenue will be understated. - Net income will be overstated. - Liability will be understated. - Retained Earnings will be overstated. - Revenue will be overstated. - Net income will be understated. - Asset will be overstated. - Rehained Earnings will be underatated. What is the Journal Entry for BOA at the maturity of the loan