At December 31 year-end, Club Company has an $8,000 note receivable from a customer. Interest of 6% hasaccrued for 7 months on the note. What will Club's income statement for the year ended December 31, report forthis situation?OA. Nothing because the business has not received the cash yetOB. Note receivable of $8,000OC. Interest revenue of $280OD. Both b and c

Lets understand the basics. When any note is receivable from customer is held by the entity at the…

At December 31 year-end, Club Company has an $8,000 note receivable accrued for 7 months on the note. What will Club's income statement for the year ended December 31, reg this situation? OA. Nothing because the business has not received the cash yet OB. Note receivable of $8,000 OC. Interest revenue of $280

At December 31 year-end, Club Company has an $8,000 note receivable accrued for 7 months on the note. What will Club's income statement for the year ended December 31, reg this situation? OA. Nothing because the business has not received the cash yet OB. Note receivable of $8,000 OC. Interest revenue of $280

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter9: Accounting For Receivables

Section: Chapter Questions

Problem 22MC: A company collects an honored note with a maturity date of 24 months from establishment, a 10%...

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A company collects an honored note with a maturity date of 24 months from establishment, a 10% interest rate, and an initial loan amount of $30,000. Which accounts are used to record collection of the honored note at maturity date? A. Interest Revenue, Interest Expense, Cash B. Interest Receivable, Cash, Notes Receivable C. Interest Revenue, Interest Receivable, Cash, Notes Receivable D. Notes Receivable, Interest Revenue, Cash, Interest Expense
On December 1 of the current year, Jordan Inc. assigns 125,000 of its accounts receivable to McLaughlin Company for cash. McLaughlin Company charges a 750 service fee, advances 85% of Jordans accounts receivable, and charges an annual interest rate of 9% on any outstanding loan balance. Prepare the related journal entries for Jordan.
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A customer was unable to pay the accounts receivable on time in the amount of $34,000. The customer was able to negotiate with the company and transferred the accounts receivable into a note that includes interest, along with an up-front cash payment of $6,000. The note maturity date is 24 months with a 15% annual interest rate. What is the entry to recognize this transfer?
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At December 31 year-end, Crain Corporation has an $8,400 note receivable from a customer. Interest of 10% has accrued for 10 months on the note. What will Crain’s financial statements report for this situation? a. The balance sheet will report the note receivable of $8,400. b. The balance sheet will report the note receivable of $8,400 and interest receivable of $700. c. Nothing because the business has not received the cash yet. d. The income statement will report a note receivable of $8,400.
The Beta Company made a sale for $340,000 on credit. It accepted a note receivable from the customer, payabl years. A 4% interest is due from the customer every December 31st. The customer's borrowing rate is 6%. The i revenue to be recorded on the note receivable at the end of the first year is (ignore decimals in your calculations Select one: a. $19,309 Ob. $12,872 c. $13,600 X d. $22,808
A business issued a 60-day, 15% note for $92,000 to a creditor on account. Journalize the entries to record (a) the issuance of the note and (b) the payment of the note at maturity, including interest. Assume a 360 days in a year. If an amount box does not require an entry, leave it blank. If required, round yours answers to whole dollar. Transaction Account Debit Credit a. b.
Prefix Supply Company received a 120-day, 8% note for $450,000, dated April 9 from a customer on account. Assume 360 days in a year. a. Determine the due date of the note. August 7 b. Determine the maturity value of the note. $ c. Journalize the entry to record the receipt of the payment of the note at maturity. If an amount box does not require an entry, leave it blank. Aug. 7 Cash $ $ Notes Receivable $ $ Interest Revenue $ $
On December 31 year-end, Crain Corporation has an $8,400 note receivable from a customer. The interest of 10% has accrued for 10 months on the note. What will Crain’s financial statements report for this situation? The balance sheet will report the note receivable of $8,400. The balance sheet will report the note receivable of $8,400 and interest receivable of $700. Nothing because the business has not received the cash yet. The income statement will report a note receivable of $8,400.
Using the data in the preceding question, what will the income statement for the year ended December 31 report for this situation? Nothing because the business has not received the cash yet Note receivable of $8,400 Interest revenue of $700 Both b and c Reference Problem On December 31 year-end, Crain Corporation has an $8,400 note receivable from a customer. The interest of 10% has accrued for 10 months on the note. What will Crain’s financial statements report for this situation? The balance sheet will report the note receivable of $8,400. The balance sheet will report the note receivable of $8,400 and interest receivable of $700. Nothing because the business has not received the cash yet. The income statement will report a note receivable of $8,400.