If a 10 percent note receivable for $10,000 is created onJanuary 1, 2015, and it has a maturity date of December31, 2018,a. No interest revenue will be recorded in 2015.b. The note receivable will be classified as a current asset.c. Interest Revenue of $1,000 will be recorded in 2015.d. None of the above.
If a 10 percent note receivable for $10,000 is created onJanuary 1, 2015, and it has a maturity date of December31, 2018,a. No interest revenue will be recorded in 2015.b. The note receivable will be classified as a current asset.c. Interest Revenue of $1,000 will be recorded in 2015.d. None of the above.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
If a 10 percent note receivable for $10,000 is created on
January 1, 2015, and it has a maturity date of December
31, 2018,
a. No interest revenue will be recorded in 2015.
b. The note receivable will be classified as a current asset.
c. Interest Revenue of $1,000 will be recorded in 2015.
d. None of the above.
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