6 Notes receivable-accrued interest LO 5-4

On March 1, 2014, Peppers Deli loaned $20,000 to Simms Supply for one year at 8 percent interest.

Answer the following questions.

a.What is Peppers interest income for 2014? (Do not round intermediate calculations and round your final answer to nearest whole dollar amount.) INTEREST INCOME ( )

b What is Peppers total amount of receivables at December 31, 2014? (Do not round intermediate calculations and round your final answer to nearest whole dollar amount.)

TOTAL RECEIVABLES ( )

d What is Peppers interest income for 2015? (Do not round intermediate calculations and round your final answer to nearest whole dollar amount.) INTEREST INCOME ( )

e What is the total amount of cash that Peppers will collect in 2015 from Simms Supply?

TOTAL CASH ( )

g.

What is the total amount of interest Peppers Deli earned from the loan to Simms Supply? TOTAL INTEREST EARNED ( ) c What amounts will be reported on Peppers 2014 statement of cash flows? (Enter cash outflows as negative amounts.) Operating activities inflow or ______________ Operating activities outflow or ________________ Investing activities inflow or _________________ Investing activities outflow or _________________ Financing activities inflow or ________________ Financing activities outflow or ________________