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 thehonored note at maturity date?A. Interest Revenue, Interest Expense, CashB. Interest Receivable, Cash, Notes ReceivableC. Interest Revenue, Interest Receivable, Cash, Notes ReceivableD. Notes Receivable, Interest Revenue, Cash, Interest Expense
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 thehonored note at maturity date?A. Interest Revenue, Interest Expense, CashB. Interest Receivable, Cash, Notes ReceivableC. Interest Revenue, Interest Receivable, Cash, Notes ReceivableD. Notes Receivable, Interest Revenue, Cash, Interest Expense
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
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
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