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

Husemann Co.'s assets include notes receivable from customers. During fiscal 2016, the amount of notes receivable averaged $45,300, and the interest rate of the notes averaged 9.8%.

2.

value: 1.66 points

Required information

Required:

a-1. Calculate the amount of interest income earned by Husemann Co. during fiscal 2016.

References

eBook & Resources

WorksheetDifficulty: 1 EasyLearning Objective: 05-06 Explain how notes receivable and related accrued interest are reported on the balance sheet.

Check my work

3.

value: 1.66 points

Required information

a-2. Prepare a horizontal model that accrues the interest income earned from the notes. (Use amounts with + for increases and amounts with for decreases.)

References

eBook & Resources

WorksheetDifficulty: 1 EasyLearning Objective: 05-06 Explain how notes receivable and related accrued interest are reported on the balance sheet.

Check my work

4.

value: 1.66 points

Required information

b-1. If the balance in the Interest Receivable account increased by $2,270 from the beginning to the end of the fiscal year, how much interest receivable was collected during the fiscal year?

References

eBook & Resources

WorksheetDifficulty: 1 EasyLearning Objective: 05-06 Explain how notes receivable and related accrued interest are reported on the balance sheet.

Check my work

5.

value: 1.66 points

Required information

b-2. Prepare a horizontal model to show the collection of this amount. (Use amounts with + for increases and amounts with for decreases.)