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On June 43, Trade Bank loaned a customer $30,000 on a 60-day, 10% note, temiting the face value less the interest to the customer. Which of the following journal entries would Trade Bank use to record the receipt of the note? a. Notes Receivable                      30,000              Interest revenue                                     3,000              Cash                                                       27,000 b. Notes receivable                       30,000             Cash                                                         30,000 c. Notes Receivable                       29,500             Cash                                                         29,500 d. Notes receivable                       30,000             Interest revenue                                       500             Cash                                                         29,500

On June 43, Trade Bank loaned a customer $30,000 on a 60-day, 10% note, temiting the face value less the interest to the customer. Which of the following journal entries would Trade Bank use to record the receipt of the note? a. Notes Receivable                      30,000              Interest revenue                                     3,000              Cash                                                       27,000 b. Notes receivable                       30,000             Cash                                                         30,000 c. Notes Receivable                       29,500             Cash                                                         29,500 d. Notes receivable                       30,000             Interest revenue                                       500             Cash                                                         29,500

FINANCIAL ACCOUNTING
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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On June 43, Trade Bank loaned a customer $30,000 on a 60-day, 10% note, temiting the face value less the interest to the customer. Which of the following journal entries would Trade Bank use to record the receipt of the note?

a. Notes Receivable                      30,000

             Interest revenue                                     3,000

             Cash                                                       27,000

b. Notes receivable                       30,000

            Cash                                                         30,000

c. Notes Receivable                       29,500

            Cash                                                         29,500

d. Notes receivable                       30,000

            Interest revenue                                       500

            Cash                                                         29,500

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