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Agrico Inc. accepted a 10-month, 12.8% (annual rate), $9,000 note from one of its customers on May 15, 2019; interest is payable with the principal at maturity.

Required:

a-1. Prepare the horizontal model to record the interest earned by Agrico during its year ended December 31, 2019. (Use amounts with + for increases and amounts with for decreases.)

Required information

Skip to question

[The following information applies to the questions displayed below.]

Agrico Inc. accepted a 10-month, 12.8% (annual rate), $9,000 note from one of its customers on May 15, 2019; interest is payable with the principal at maturity.

a-2. Prepare the journal entry to record the interest earned by Agrico during its year ended December 31, 2019. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

[The following information applies to the questions displayed below.]

Agrico Inc. accepted a 10-month, 12.8% (annual rate), $9,000 note from one of its customers on May 15, 2019; interest is payable with the principal at maturity.

b-1. Prepare the horizontal model to record collection of the note and interest at maturity. (Use amounts with + for increases and amounts with for decreases.)

Agrico Inc. accepted a 10-month, 12.8% (annual rate), $9,000 note from one of its customers on May 15, 2019; interest is payable with the principal at maturity.

b-2. Prepare the journal entry to record collection of the note and interest at maturity. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)