Leek Company receives a $12,000, 3-month, 5% promissory note from Rey Company in settlement of an open accounts receivable. What entry will Leek Company make upon receiving the note?

Select one:

a. Notes Receivable.............................................. 12,150 Accounts ReceivableRey Company................ 12,150

b. Notes Receivable............................................................12,000 Interest Receivable......................................... 150 Accounts ReceivableRey Company............... 12,000 Interest Revenue........................................... 150

c. Notes Receivable.................................................... 12,000 Accounts ReceivableRey Company............ 12,000

d. Notes Receivable............................................... 12,150 Accounts ReceivableRey Company.................... 12,000 Interest Revenue.................................... 150 _________________________________________________________________________________________________________________________________

Internal controls are concerned with

Select one:

1. the extent of government regulations.

2. safeguarding assets.

3. preparing income tax returns

4. only manual systems of accounting