Use the following to answer questions $6-10$

On September $1,2024,$ the company borrows $$1,000,000$ cash from the bank to expand operations. The company

signs a $1$ year, $6\%$ promissory note. The company's year$-$end is December $31.$

How was the loan classified on the company's December $31,2024$ balance sheet?

A$.$ Current liability

B$.$ Long term liability

C$.$ Note disclosure only

D$.$ Stockholders' Equity

How was the loan classified on the company's December $31,2024$ statement of cash flow?

A$.$ Operating activity

B$.$ Investing activity

C$.$ Financing activity

D$.$ Not shown on the statement of cash flows

How much interest should be accrued on December $31,2024($assume no previous entry was

recorded for interest on the loan$)?$

When the note is paid at maturity $($August $31,2025)$ how much cash is paid to the bank?

When the note is paid at maturity in the second accounting year, how much does net income

decrease?

Use the following to answer questions $11-13$

On July $1$ st company borrows $$100,000$ by issuing a one$-$year note compounding annually. Interest is payable at

maturity.

$

Determine the amount of interest expense that should be recorded in a year$-$end adjusting entry