Question
Carnegie Jewelers accepted a 9-month, 9% note for $100,000 from a customer on July 1, 2019. The note is due on March 31, 2020. Assuming
Carnegie Jewelers accepted a 9-month, 9% note for $100,000 from a customer on July 1, 2019. The note is due on March 31, 2020. Assuming the companys accounting period ends on December 31, 2019, how much interest revenue should be recognized during 2019 and 2020?
2019 2020
| a. | $4,500 $4,500 | |
| b. | $4,500 $2,250 | |
| c. | $9,000 $ -0- | |
| d. | $2,250 $4,500 |
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Financial Accounting Text Only
Authors: Jerry J. Weygandt, Donald E. Kieso, Paul D. Kimmel
5th Edition
0006575404, 978-0006575405
