solve 5&6

On May 1, 2014, Adams Company borrowed $100,000 by signing a one-year, 9 percent note payable. The principal and interest will be paid on May 1, 2015. How much interest expense Yuld be reported on the income statement for the year ended December 31, 2013 A. $9,000 B. $3,000 C. $6,000 D. $4,500 E. $0 On January 1, 2013, Craig Company paid the premium on a four-year insurance policy in the amount of $12,000. At that time, the full amount paid was recorded as prepaid insurance. After recording the correct adjusting entry for the insurance policy on December 31, 2015, Craig Company's records would reflect what balance in the prepaid insurance account? A. $6,000 B. $9,000 C. $3,000 D. $4,000 E. SO