Blue Spruce Corp. lends Dobson industries $ 60000 on August 1, 2017, accepting a 9-month, 6% interest note. If Blue Spruce Corp. accrued interest at its December 31, 2017 year-end, what entry must it make to record the collection of the note and interest at its maturity date?Cash62700 Notes Receivable 60000 Interest Revenue 2700Notes Receivable60000 Interest Receivable1500 Interest Revenue1200 Cash 62700Cash62700 Notes Receivable 60000 Interest Receivable 1500 Interest Revenue 1200Cash62700 Notes Receivable 62700

Interest receivable on December 31, 2017 = 60,000 x 6/100 x 5/12 = $1,500 Interest revenue from…

Answered: Blue Spruce Corp. lends Dobson…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Blue Spruce Corp. lends Dobson industries $ 60000 on August 1, 2017, accepting a 9-month, 6% interest note. If Blue Spruce Corp. accrued interest at its December 31, 2017 year-end, what entry must it make to record the collection of the note and interest at its maturity date?

Cash	62700
	Notes Receivable	60000
	Interest Revenue	2700

Notes Receivable	60000
Interest Receivable	1500
Interest Revenue	1200
	Cash	62700

Cash	62700
	Notes Receivable	60000
	Interest Receivable	1500
	Interest Revenue	1200

Cash	62700
	Notes Receivable		62700

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