Use the following to answer questions 9 - 10 On November 1st, the company received a $21,000 payment from a customer for services to be rendered evenly over the next three months. Deferred Revenue was credited on November 1st and no other entries regarding this transaction were made until December 31st. Use the following to answer questions 11-12 On September 1st the company borrows $100,000 from a local bank for nine months. A note is signed with principal and 4.5% interest to be paid when the note matures next year. A note payable was recognized on September 1st and no other entries regarding this transaction were made until December 31st. 11. $ In the adjusting entry recorded on December 31st determine the amount of interest expense that should be reported. 12. What effect would failure to record the adjusting entry for this note payable have on the financial statement items? A. would cause it to be overstated B. would cause it to be understated C. would have no effect Assets Liabilities Stockholders' Equity Revenue Expenses Net income Use the following to answer questions 13 - 14 The company incurs employee salaries of $27,000 for the last week of December which will be paid on January 5th. 13. Record the adjusting entry on December 31st related to the employee salaries Account Debit Credit 14. $ Indicate by how much net income in the income statement is higher or lower if the adjustment in #13 is not recorded (if lower put "-" in front of your answer).