Question
Can someone help me please? On November 1, Alex Corporation purchased merchandise by issuing a 12%, 90-day note payable in the amount of $100,000. The
Can someone help me please?
On November 1, Alex Corporation purchased merchandise by issuing a 12%, 90-day note payable in the amount of $100,000. The proper adjusting entry at December 31 (end of Alexs fiscal year) on the books of Alex includes a:
Credit to Notes Receivable of $2,000 | ||
Credit to Interest Payable of $2,000 | ||
Credit to Interest Revenue of $2,000 | ||
Credit to Interest Receivable of $2,000 | ||
None of the above |
On October 17, 2012, Walker Corporation sold merchandise in return for a 12%,120-day note receivable in the amount of $40,000. The proper entry to record the collection of the note on the maturity date will include a:
Credit to Interest Revenue of $1,600 | ||
Credit to Interest Revenue of $1,200 | ||
Credit to Interest Receivable of $1,600 | ||
Credit to Interest Receivable of $1,000 | ||
None of the above |
Mark Company received a 60-day, 15% note for $9,000 on June 16. Which of the following statements is true?
The principal of the note plus interest is due on August 15 | ||
The maturity value of this note is $9,000 | ||
Mark will receive $9,000 plus interest of $1,350 at maturity | ||
Mark should record a total note receivable due of $9,225 on June 16 | ||
None of the above |
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