Principles 1 - Summer 2018 Principles Study Guide for Debt Chapters Question 17 (1 point) Grayson Bank agrees to lend the Trust Company $200,000 on January 1. Trust Company signs a $200,000, 5.25%, 1-year note. The entry made by Trust Company on January 1 to record the borrowing: Cash Interest Expense 10,500 189,500 Notes Payable 200,000 Cash 210,500 Notes Payable 210,500 Cash 200,000 Notes Payable 200,000 Notes Payable 200,000 Interest Payable 10,500 Cash 200,000 Interest Expense 10,500 Question 18 (1 point) Which of the following would most likely be classified as a long-term liability? Two-year Notes Payable Bonds Payable Mortgage Payable All of the above are long term liabilities Question 19 (1 point) The current portion of long-term debt should be classified as a long-term liability. not be separated from the long-term portion of debt. be paid immediately. be reclassified as a current liability Question 20 (1 point) 6 Page