+ A company receives interest on a $20,000, 8%, 5-year note receivable each April 1. At December 31, 2017 the following adjusting entry was made to accrue interest receivable: Interest Receivable 5,400 Interest Revenue 5,400 Assuming that the company does use reversing entries, what entry should be made on April 1, 2018 when the annual interest payment is received? a. Cash 1,800 Interest Revenue 1,800 b. Cash 5,400 Interest Receivable 5,400 C Cash 7,200 Interest Receivable 5,400 Interest Revenue 1,800 d. Cash 7.200 Interest Revenue 7,200 Which of the following is a contra account? a Premium on bonds payable b. Uneamed revenue cPatents Accumulated depreciation 16 The major elements of the income statement are a revenue, cost of goods sold, selling expenses, and general expense. b. operating section, nonoperating section, discontinued operations, and cumulative effect c. revenues, expenses, gains, and losses d. revenues, irregular items, and general expenses. The income statement reveals a resources and equities of a firm at a point in time b. resources and equities of a firm for a period of time cnet earnings (net income) of a firm at a point in time d net earnings (net income) of a firm for a period of time. S Which of the following is an advantage of the single-step income statement over the multiple-step income statement? a it reports gross profit for the year b. Expenses are classified by function c. It matches costs and expenses with related revenues d. It does not imply that one type of revenue or expense has priority over another The single-step income statement emphasizes a the gross profit figure. b. total revenues and total expenses operating and non-operating expenses d. the various components of income from continuing operations