In Leni Company's December 31, 2021 statement of financial position, a note receivable was reported as a non-current asset and its accrued interest for five months was reported as a current asset. Which of the following terms would fit Leni Company's note receivable? a. Both principal and accrued interest amounts are payable on July 31, 2022 and July 31, 2023. b. Both principal and interest are due on July 31, 2023. c. Interest is due on July 31, 2022 and July 31, 2023 and principal is due on July 31, 2023. d. Accrued interest is due on December 31, 2021 and principal is due on July 31, 2023.
In Leni Company's December 31, 2021 statement of financial position, a note receivable was reported as a non-current asset and its accrued interest for five months was reported as a current asset. Which of the following terms would fit Leni Company's note receivable? a. Both principal and accrued interest amounts are payable on July 31, 2022 and July 31, 2023. b. Both principal and interest are due on July 31, 2023. c. Interest is due on July 31, 2022 and July 31, 2023 and principal is due on July 31, 2023. d. Accrued interest is due on December 31, 2021 and principal is due on July 31, 2023.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
In Leni Company's December 31, 2021
a. Both principal and accrued interest amounts are payable on July 31, 2022 and July 31, 2023.
b. Both principal and interest are due on July 31, 2023.
c. Interest is due on July 31, 2022 and July 31, 2023 and principal is due on July 31, 2023.
d. Accrued interest is due on December 31, 2021 and principal is due on July 31, 2023.
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