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On 9/1/19 a customer signed a 10-year note for $100,000 in exchange for services rendered. The note calls for an annual payment of interest at
On 9/1/19 a customer signed a 10-year note for $100,000 in exchange for services rendered. The note calls for an annual payment of interest at a contractual (stated) rate of 2%, payable every year starting on 9/1/20. Given the credit standing of the customer, an interest rate of 8% has been imputed as the effective rate. The principal amount of the note is due at maturity. Which of the following statements are correct? (select all that apply - i.e., just one or as many as all of them) On 9/1/19, a balance sheet account is debited for $100,000 On 9/1/19, Revenue is credited for $100,000 On 9/1/20, a contra-asset account is debited On 9/1/20, Revenue is credited for an amount higher than $2,000 On 9/1/19, a contra-asset account is credited for (approximately) $59,739 On 9/1/20, Cash is debited for $2,000 On 9/1/20, Cash is debited for $8,000 On 9/1/19, Revenue is credited for (approximately) $40,261
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