Jasper makes a $25,000, 90-day, 7% cash loan to Clayborn Co. Jasper's entry to record the collection of the note and interest at maturity should be: (Use 360 days a year.)
A. Debit Notes Payable $25,000; Debit Interest Expense $1,750; credit Cash $26,750.
B. Debit Cash for $25,000; credit Notes Receivable $25,000.
C. Debit Cash $25,437.50; credit Notes Receivable for $25,437.50.
D. Debit Cash $25,437.50; credit Interest Revenue $437.50; credit Notes Receivable $25,000.
E. Debit Cash $26,750; credit Interest Revenue $1,750, credit Notes Receivable $25,000.
Answer: D
You might also like to view...
When the amount of overhead applied differs from actual, the dollar amount it is usually written off to
a. Cost of Goods Sold. b. Work in Process Inventory. c. Finished Goods Inventory. d. Miscellaneous Expense.
Describe the difference between FIFO and LIFO queue disciplines
What will be an ideal response?
The accounts of Mason Company at the end of the past year report the following amounts:Accounts AmountDividends……. $15,500Revenues…………………………… $97,000Expenses……………………………. $43,800Stock issuances………………..... 2,000If the beginning equity for the year was $173,000, calculate the ending equity for Mason Company.
What will be an ideal response?
Which of the following companies purchased Instagram?
A. Google B. Apple C. Facebook D. Microsoft