On September 1 the company borrows $100,000 from a local bank for nine months. A note...

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On September 1³ 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 1" and no other entries regarding this transaction were made until December 31st. 11. $ In the adjusting entry recorded on December 31" 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 Liabitie Stockholders Equity Revenue Expenses Not 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 31* related to the employee salaries Account Debi Credit 14.S 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). On September 1³ 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 1" and no other entries regarding this transaction were made until December 31st. 11. $ In the adjusting entry recorded on December 31" 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 Liabitie Stockholders Equity Revenue Expenses Not 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 31* related to the employee salaries Account Debi Credit 14.S 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).