On October 1, 2011, Coast Financial loaned Barr Corporation$300,000, receiving in exchange a nine-month, 12 percentnote receivable. Coast ends its fiscal year on December 31and makes adjusting entries to accrue interest earned on allnotes receivable. The interest earned on the note receivablefrom Barr Corporation during 2012 will amount to:a. $9,000. b. $18,000.c. $27,000. d. $36,000.
On October 1, 2011, Coast Financial loaned Barr Corporation$300,000, receiving in exchange a nine-month, 12 percentnote receivable. Coast ends its fiscal year on December 31and makes adjusting entries to accrue interest earned on allnotes receivable. The interest earned on the note receivablefrom Barr Corporation during 2012 will amount to:a. $9,000. b. $18,000.c. $27,000. d. $36,000.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
On October 1, 2011, Coast Financial loaned Barr Corporation
$300,000, receiving in exchange a nine-month, 12 percent
note receivable. Coast ends its fiscal year on December 31
and makes
notes receivable. The interest earned on the note receivable
from Barr Corporation during 2012 will amount to:
a. $9,000. b. $18,000.
c. $27,000. d. $36,000.
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