On October 1, Year 1 Hernandez Company loaned $60,000 cash to Acosta Company. The one-year note carried a 6% rate of interest. Which of the following shows how the December 31, Year 1 recognition of accrued interest will affectHernandez's financial statements?AssetsA. 900B. 900C. 2,700D. 2,700Balance SheetLiabilities +ΝΑΝΑΝΑΝΑMultiple ChoiceOption AOption COption DOption BStockholders'Equity9009002,7002,700Income StatementRevenue Expense =900ΝΑ9002,700ΝΑΝΑ2,700ΝΑNetIncome9009002,7002,700Statement ofCash Flows900 IAΝΑ2,700 IAΝΑ

Journal entries for accrued interest income: Interest receivable account is debited and Interest…

On October 1, Year 1 Hernandez Company loaned $60,000 cash to Acosta Company. The one-year note carried a 6% rate of interest. Which of the following shows how the December 31, Year 1 recognition of accrued interest will affect Hernandez's financial statements? Assets A. 900 B. 900 C. 2,700 D. 2,700 Multiple Choice Balance Sheet Liabilities + ΝΑ OOO O Option A Option C Option D Option B ΝΑ ΝΑ ΝΑ Stockholders' Equity 900 900 2,700 2,700 Income Statement Revenue 900 900 2,700 2,700 Net Expense = Income ΝΑ 900 900 2,700 2,700 NA ΝΑ NA Statement of Cash Flows 900 IA ΝΑ 2,700 IA NA

On October 1, Year 1 Hernandez Company loaned $60,000 cash to Acosta Company. The one-year note carried a 6% rate of interest. Which of the following shows how the December 31, Year 1 recognition of accrued interest will affect Hernandez's financial statements? Assets A. 900 B. 900 C. 2,700 D. 2,700 Multiple Choice Balance Sheet Liabilities + ΝΑ OOO O Option A Option C Option D Option B ΝΑ ΝΑ ΝΑ Stockholders' Equity 900 900 2,700 2,700 Income Statement Revenue 900 900 2,700 2,700 Net Expense = Income ΝΑ 900 900 2,700 2,700 NA ΝΑ NA Statement of Cash Flows 900 IA ΝΑ 2,700 IA NA

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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