Reference no: EM132914042

Problem 1: Marcus Corp. signed a note payable with Ryan Company on January 1, 2020. Marcus borrowed $3,000 from Ryan at a rate of 5%. Both interest and principal are payable on June 30, 2020. The journal entry to record the note on January 1, 2020 for Marcus Corp. is:

Select one:
a. Debit Note Payable $3,000; Credit Cash $3,000
b. Debit Cash $3,075; Credit Note Payable $3,075
c. Debit Cash $3,000; Credit Note Payable $3,000
d. Debit Note Payable $3,075; Credit Cash $3,075

Problem 2: Which of the following items are included on a note payable?

i - Amount owed
ii - Interest rate
iii - Length of time until repayment is required
iv - Parties involved

Select one:
a. All of i, ii, iii, and iv
b. i, ii, and iv only
c. ii and iii only
d. i, ii, and iii only