Question

46. When a bank collects a note for the holder, i nouifies the hoider on s form caliled a 47 A $5,000, 12% note is dated April 10 and is due in 90 days.The due date would be 48. When the holder of an interest-bearing note is unabile to entry includes collect the note when due, the journal 49. Face value of a note plus interest is called the O. The adjusting entry for accrued interest on a notes receivable includes 51. American Bank has loaned $12,000 to Shoreline Petroleum inc. using a 60-day non-interest-bearing note. The bank discounted the note at 12%. The proceeds of the loan will be 52. Tangible assets include (tal estare fin 53. The write-off of the cost of plant and equipment is called aft 54. The write-off of the cost of an intangible asset is called 55. Which of the followine is NOT

Answer 1

46) Solution: credit advice

Explanation: The credit advice is used by bank when it collecte a note for the holder.

47) Solution: July 9.

Explanation: July 9 for note issued on April 10 and due in 90 days

48) Solution: debiting Accounts Receivable and crediting Notes Receivable and Interest Revenue

Explanation: Dr. Accounts Receivable; Cr. Notes Receivable; Cr. Interest Revenue

49) Solution: maturity value

Explanation: The maturity value is sum of face value of a note and interest

50) Solution: credit to Interest Revenue

Explanation: The accrued interest adjusting entry on a note receivable would include credit to Interest Revenue

52) Solution: cash

Explanation: Tangible assets such as cash

53) Solution: Depreciation

Explanation: Depreciation refers to write-off of the cost of plant and equipment.

54) Solution: depletion amortization

Explanation: The depletion amortization refers to write-off of the cost of an intangible asset.