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
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
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
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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