I need provide correct answer general accounting ABC Corp. received a 3-month, 8% per year, $1,500 note receivableon December 1. The adjusting entry on December 31 will include:a. a debit to Interest Revenue of $10b. a credit to Interest Receivable of $20c. a credit to Interest Revenue of $30

Step 1: Define Adjusting Entry On Note ReceivableNotes receivable are asset which generally earn…

Answered: ABC Corp. received a 3-month, 8% per…

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter9: Accounting For Receivables

Section: Chapter Questions

Problem 24Q: Chemical Enterprises issues a note in the amount of $156,000 to a customer on January 1, 2018. Terms...

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Chemical Enterprises issues a note in the amount of $156,000 to a customer on January 1, 2018. Terms of the note show a maturity date of 36 months, and an annual interest rate of 8%. What is the accumulated interest entry if 9 months have passed since note establishment?
Jain Enterprises honors a short-term note payable. Principal on the note is $425,000, with an annual interest rate of 3.5%, due in 6 months. What journal entry is created when Jain honors the note?
A customer takes out a loan of $130,000 on January 1, with a maturity date of 36 months, and an annual interest rate of 11%. If 6 months have passed since note establishment, what would be the recorded interest figure at that time? A. $7,150 B. $65,000 C. $14,300 D. $2,383
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.
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. Refer to RE6-10. On December 31, Jordan Inc. received 50,000 on assigned accounts. Prepare Jordans journal entries to record the cash receipt and the payment to McLaughlin.
Swan Corporation received a four-month, 8%, $1,650 note receivable on March 1. Theadjusting entry on March 31 will includea. a debit to Interest Receivable for $44.b. a credit to Interest Revenue for $11.c. a debit to Cash for $132.d. a debit to Interest Receivable for $132.
A company is holding a $6,000, 90-day, 6% note receivable, dated December 1. The entry to record accrued interest at the end of its fiscal year on December 31 will include: Select one: a. An increase interest income for $90 b. An increase to cash for $6,090 c. A decrease to note receivable for $6,000 d. An increase to interest receivable for $30
Silver Company received a two-month, 6% note for $16,000 on Aug. 5. Which of the following statements is correct? A. Silver will receive $16,000 plus interest of $960 at maturity. B. Silver should record a total receivable due of $16,080 on August 5. C. The principal of the note plus interest is due on October 15. D. The maturity value of this note is $16, 160. 6. Silver Company received a two-month, 6% note for $16,000 on Aug. 5. Which of the following statements is correct? A. Silver will receive $16,000 plus interest of $960 at maturity. B. Silver should record a total receivable due of $16,080 on August 5. C. The principal of the note plus interest is due on October 15. D. The maturity value of this note is $16,160.
On November 1, Kotler Company accepted a 3-month note receivable as payment for services provided to Norman Company. The face value was $9,000, and it had a stated 6% annual rate of interest. Kotler Company made the required accrual on December 31. On February 1, the entry to record the collection of the note should include: Select one: a. A decrease to Interest Receivable for $135 b. An Increase to Interest Income for $45 c. A decrease to Notes Receivable for $8,135 d. An increase to Interest Income for $135
On October 1, Black Company receives a 10% interest-bearing note from Reese Company to settle a $17,800 account receivable. The note is due in six months. At December 31, Black should record interest revenue of a.$455 b.$442 c.$445 d.$452
On October 1, Black Company receives a 8% interest-bearing note from Reese Company to settle a $18,600 account receivable. The note is due in six months. At December 31, Black should record interest revenue of Oa. $369 Оb. $372 Ос. $382 Od. $379
On August 1, Kim Company accepted a 90-day note receivable as payment for services provided to Hsu Company. The terms of the note were $20,000 face value and 6% interest. On October 30, the journal entry for the collection of the note, assuming a 360-day year, should include a a.credit to Interest Revenue for $300 b.credit to Notes Receivable for $20,300 c.debit to Interest Receivable for $300 d.debit to Notes Receivable for $20,000

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ABC Corp. received a 3-month, 8% per year, $1,500 note receivable on December 1. The adjusting entry on December 31 will include: a. a debit to Interest Revenue of $10 b. a credit to Interest Receivable of $20 c. a credit to Interest Revenue of $30