35 36 Question 35 (4 points) On October 1, 2020, the Petty Co. loaned $20,000 to the American Girl Co. The loan is a one-year note with an interest rate of 10%. All payments for principal and interest will be received by the Petty Co. on September 30, 2021. 38 39 41 42 On October 1, 2020, after the Petty Co. prepares the journal entry to record the note, overall 3 44 45 6 47 48 Total assets and total liabilities will increase. Total assets and total liabilities will decrease. Total assets will remain unchanged. None of the above. 49 50 51 Debit to Accounts Receivable and a credit to Sales Revenue. 4 35 36 7 38 39 Question 34 (4 points) The Elizabeth Co. purchased 1,000 basketballs for resale to their customers for $10,000 ($10 per unit). The Elizabeth Co. sold 100 basketballs at a selling price of $30 per unit. The sale was made on account with cash to be received the following month The Elizabeth Co. would report a gross profit of: 10 41 42 I 43 44 45 $2,000 $3,000. 46 47 48 $10,000. 1 49 50 51 $500. $1,000 52 Question 35 (4 points) On October 1, 2020, the Petty Co. loaned $20,000 to the American Girl Co. The loan is a one-year note with an interest rate of 10%. All payments for principal and interest will be received by the Petty Co. on September 30, 2021. MacBook Air 35 36 38 39 Question 36 (4 points) On October 1, 2020, the Petty Co. loaned $20,000 to the American Girl Co. The loan is a one-year note with an interest rate of 10%. All payments for principal and interest will be received by the Petty Co. on September 30, 2021. How much total Interest Revenue will the Petty Co report at year end on 12/31/2020? 41 42 -- 3 44 45 I $333.33 $0; all interest will be recognized in the year cash is received. $2,000. 6 47 48 $500 39 50 51