Question
Use the following facts to answer the proceeding questions On April 1, 2021, Beerbo lends money to a Hop-Flop farm, a supplier of whole and
Use the following facts to answer the proceeding questions
On April 1, 2021, Beerbo lends money to a Hop-Flop farm, a supplier of whole and pellet hops. The money is to assist Hop-Flop in expanding its operations. Hop-Flop signs a 9-month note for $1,000, and a 12-month note for $1,000. Both notes carry a 12% annual interest rate. Both the principle and interest are paid at each note’s maturity date.
On April 1, 2021, how would Beerbo record the total cash lent?
On December 31, 2021, how would Beerbo record the interest revenue earned on each note?
On March 31, 2022, how would Beerbo record the interest revenue earned on each note?
For Beerbo, what is the total maturity value for each note?
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April 1 2021 Note receivables Dr 1000 Cash Cr 1000 9 mon...
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Accounting Principles Volume 2
Authors: Jerry J. Weygandt, Donald E. Kieso, Paul D. Kimmel, Barbara Trenholm, Valerie Warren, Lori Novak
8th Canadian Edition
1119502551, 1-119-50255-5, 978-1119502555
