On June 1, 2025, Bramble Corp. loaned Blossom $505200 on a 12% note, payable in five annual inst January 2, 2026. In connection with this loan, Blossom was required to deposit $5052 in a zero-interest-bearing escrow account. The amount held in escrow is to be returned to Blossom after all principal and interest payments have been made. Interest on the note is payable on the first day of each month beginning July 1, 2025, Blossom made timely payments through November 1, 2025. On January 2,2026, Bramble received payment of the first principal installment plus all interest due. At December 31, 2025, the balance in Bramble's Interest Receivable account for the loan to Blossom is O $15156 O $5052 O $10104 0 $0.
On June 1, 2025, Bramble Corp. loaned Blossom $505200 on a 12% note, payable in five annual inst January 2, 2026. In connection with this loan, Blossom was required to deposit $5052 in a zero-interest-bearing escrow account. The amount held in escrow is to be returned to Blossom after all principal and interest payments have been made. Interest on the note is payable on the first day of each month beginning July 1, 2025, Blossom made timely payments through November 1, 2025. On January 2,2026, Bramble received payment of the first principal installment plus all interest due. At December 31, 2025, the balance in Bramble's Interest Receivable account for the loan to Blossom is O $15156 O $5052 O $10104 0 $0.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:On June 1, 2025, Bramble Corp. loaned Blossom $505200 on a 12% note, payable in five annual installments of $101040 beginning
January 2, 2026. In connection with this loan, Blossom was required to deposit $5052 in a zero-interest-bearing escrow account. The
amount held in escrow is to be returned to Blossom after all principal and interest payments have been made. Interest on the note is
payable on the first day of each month beginning July 1, 2025, Blossom made timely payments through November 1, 2025. On January
2. 2026, Bramble received payment of the first principal installment plus all interest due. At December 31, 2025, the balance in
Bramble's Interest Receivable account for the loan to Blossom is
O $15156
O $5052.
O $10104
O $0.
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