1.) (MULTIPLE CHOICE) (OPTIONS 1-4)

Tempered Glass Co., a calendar year firm, issued an 11-month $75,000 note to a newly hired executive with a stated interest rate of 7% on August 1, 2020. The terms of the note state that all interest is to be repaid when the note matures. Provide the necessary journal entry for 8/1/2020 (3 points).

1. DR Cash 75,000

CR Note Receivable 75,000

2. DR Note Receivable 75,000

CR Cash 75,000

3. DR Cash 75,000

CR Note Payable 75,000

4. DR Note Payable 75,000

CR Cash 75,000

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2.) (MULTIPLE CHOICE) (OPTIONS 1-6)

Tempered Glass Co., a calendar year firm, issued an 11-month $75,000 note to a newly hired executive with a stated interest rate of 7% on August 1, 2020. The terms of the note state that all interest is to be repaid when the note matures. Provide the necessary journal entry for 12/31/2020 (4 points).

1. DR Interest Expense 2,188

CR Interest Payable 2,188

2. DR Interest Receivable 2,188

CR Interest Revenue 2,188

3. DR Interest Receivable 2,188

CR Cash 2,188

4. DR Interest Expense 1,750

CR Interest Payable 1,750

5. DR Interest Receivable 1,750

CR Interest Revenue 1,750

6. DR Interest Receivable 1,750

CR Cash 1,750