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1) In most cases, current liabilities are payable within ____ year(s), and long-term liabilities are payable more than ____ year(s) from now.
one; two
one; one
two; two
one; ten
2) The Pita Pit borrowed $100,000 on November 1, 2018, and signed a six-month note bearing interest at 12%. Principal and interest are payable in full at maturity on May 1, 2019. In connection with this note, The Pita Pit should report interest expense in 2019 for the amount of:
$0.
$4,000.
$2,000.
$6,000.
3) (If no entry is required for a transaction/event, select “No journal entry required” in the first account field.)
General Journal
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