Question
On November 1, 2014, Salem Corporation sold land priced at $640,000 in exchange for a 3%, six-month note receivable. On May 1, 2015 (maturity date),
- On November 1, 2014, Salem Corporation sold land priced at $640,000 in exchange for a 3%, six-month note receivable.
| On May 1, 2015 (maturity date), the note is collected in full by Salem Corporation. Assuming a fiscal year-end of December 31, Salem recognizes which of the following in its income statement for 2015 with regard to this note? |
$649,600 sales revenue.
$9,600 interest revenue.
$6,400 interest revenue.
$3,200 interest revenue.
- On November 1, 2014, Salem Corporation sold land priced at $640,000 in exchange for a 3%, six-month note receivable.
| On May 1, 2015 (maturity date), the note is collected in full by Salem Corporation. Assuming a fiscal year-end of December 31, Salem recognizes which of the following in its income statement for 2015 with regard to this note? |
$649,600 sales revenue.
$9,600 interest revenue.
$6,400 interest revenue.
$3,200 interest revenue.
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Financial and Managerial Accounting
Authors: Horngren, Harrison, Oliver
3rd Edition
978-0132497992, 132913771, 132497972, 132497999, 9780132913775, 978-0132497978
