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On October 1, 2023, Corporation 1 issued a $100,000 note payable to Corporation 2. The note carries a 10% annual interest rate. All Interest and principal is due to Corporation 2 on March 31, 2024. All proper adjusting journal entries were made on their respective books at December 31. The journal entry to be recorded by Corporation 2 when the note is paid on

On October 1, 2023, Corporation 1 issued a $100,000 note payable to Corporation 2. The note carries a 10% annual interest rate. All Interest and principal is due to Corporation 2 on March 31, 2024. All proper adjusting journal entries were made on their respective books at December 31. The journal entry to be recorded by Corporation 2 when the note is paid on

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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On October 1, 2023, Corporation 1 issued a $100,000 note payable to Corporation 2. The note carries a 10% annual interest rate. All Interest and principal is due to Corporation 2 on March 31, 2024. All proper adjusting journal entries were made on their respective books at December 31. The journal entry to be recorded by Corporation 2 when the note is paid on March 31, 2024 will include: A) A credit to Interest Receivable for $2,500. B) A debit to cash for $2,500. C) A debit to interest revenue for $5,000. D) A credit to cash for $105,000
Transcribed Image Text:On October 1, 2023, Corporation 1 issued a $100,000 note payable to Corporation 2. The note carries a 10% annual interest rate. All Interest and principal is due to Corporation 2 on March 31, 2024. All proper adjusting journal entries were made on their respective books at December 31. The journal entry to be recorded by Corporation 2 when the note is paid on March 31, 2024 will include: A) A credit to Interest Receivable for $2,500. B) A debit to cash for $2,500. C) A debit to interest revenue for $5,000. D) A credit to cash for $105,000
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