FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Accrued Revenue
On November 1, 2x0, Pyramid Company sold $200,000 worth of limestone blocks to Gira United. The blocks cost Pyramid $125,000. Instead of an
Account Receivable, Giza signed a formal note to Pyramid Co., and agreed to pay a principal of $200,000 plus interest at 95% in full in three months (on
January 31, 2xx1).
Use the following formula: Principal Annual Interest Rate 1/12 Monthly Interest Income
1. What is the journal entry Pyramid Company will make on November 17
2.
3. What is the balance of the interest receivable account at December 31?
4.
What is the adjusting entry needed on November 30?
5.
How much will Pyramid collect from Giza on January 31 (including principal)?
What is the entry needed by Pyramid on January 31 when Pyramid receives the cash from Giza?
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Transcribed Image Text:Accrued Revenue On November 1, 2x0, Pyramid Company sold $200,000 worth of limestone blocks to Gira United. The blocks cost Pyramid $125,000. Instead of an Account Receivable, Giza signed a formal note to Pyramid Co., and agreed to pay a principal of $200,000 plus interest at 95% in full in three months (on January 31, 2xx1). Use the following formula: Principal Annual Interest Rate 1/12 Monthly Interest Income 1. What is the journal entry Pyramid Company will make on November 17 2. 3. What is the balance of the interest receivable account at December 31? 4. What is the adjusting entry needed on November 30? 5. How much will Pyramid collect from Giza on January 31 (including principal)? What is the entry needed by Pyramid on January 31 when Pyramid receives the cash from Giza?
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