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On September 1, Year 3, Geco Co. sold $40,000 of goods and accepted a one-year, 12% note. If no reversing entries were made after December 31, Year 3, and adjusting entries were made on December 31, 2019, record the collection of the note on September 1, Year 4. Assume a 360-day year. Assume instead that a non-interest-bearing note for $44,800 for the same goods was issued. What balance sheet accounts and amounts would be disclosed on December 31, Year 3? a. b.

On September 1, Year 3, Geco Co. sold $40,000 of goods and accepted a one-year, 12% note. If no reversing entries were made after December 31, Year 3, and adjusting entries were made on December 31, 2019, record the collection of the note on September 1, Year 4. Assume a 360-day year. Assume instead that a non-interest-bearing note for $44,800 for the same goods was issued. What balance sheet accounts and amounts would be disclosed on December 31, Year 3? a. b.

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 September 1, Year 3, Geco Co. sold $40,000 of goods and accepted a one-year, 12% note. If no reversing entries were made after December 31, Year 3, and adjusting entries were made on December 31, 2019, record the collection of the note on September 1, Year 4. Assume a 360-day year. Assume instead that a non-interest-bearing note for $44,800 for the same goods was issued. What balance sheet accounts and amounts would be disclosed on December 31, Year 37 b.
Transcribed Image Text:On September 1, Year 3, Geco Co. sold $40,000 of goods and accepted a one-year, 12% note. If no reversing entries were made after December 31, Year 3, and adjusting entries were made on December 31, 2019, record the collection of the note on September 1, Year 4. Assume a 360-day year. Assume instead that a non-interest-bearing note for $44,800 for the same goods was issued. What balance sheet accounts and amounts would be disclosed on December 31, Year 37 b.
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