ZuoTi.Pro
Question

On December 1, 2017, Summit, Inc. sold machinery to a customer for $22,000. The customer could not pay at the time of sa...

On December 1, 2017, Summit, Inc. sold machinery to a customer for $22,000. The customer could not pay at the time of sale but agreed to pay 10 months later and signed a 10-month note at 10% interest. How much interest revenue was earned during 2018? (Round any intermediate calculations to two decimal places, and your final answer to the nearest dollar.)

a

$1,650

b

$1,100

c

$2,017

d

$2,200
business   accounting   
0 0
Add a comment Improve this question Transcribed image text
Next > < Previous
Sort answers by oldest

Homework Answers

Answer #1

Interest earned during 2018 = $22000*10%*9/12

= $1650

Option a. is correct answer.

0 0
Add a comment
Know the answer?
Add Answer to:
On December 1, 2017, Summit, Inc. sold machinery to a customer for $22,000. The customer could not pay at the time of sa...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions

  • On October​ 1, 2019,​ Westfield, Inc. sold machinery to a customer for $20,000. The customer could...

    On October​ 1, 2019,​ Westfield, Inc. sold machinery to a customer for $20,000. The customer could not pay at the time of​ sale, but agreed to pay 11 months​ later, and signed a 11−month note at 11​% interest. How much interest revenue was earned during​ 2019? Round any intermediate calculations to two decimal​ places, and your final answer to the nearest dollar. A.$580 B.$550 C.$4,400 D.$2,017

  • Cheese Pouf Catering, Inc. Year ending December 31, 2017 At 11:00 PM New Year's Eve, Judy...

    Cheese Pouf Catering, Inc. Year ending December 31, 2017 At 11:00 PM New Year's Eve, Judy Asiago, the owner of Cheese Pouf Catering, Inc (CPC), was just packing up the company's equipment after a very successful and lucrative pre teen New Year's Eve party. CPC was just an hour away from ending its first year in business Asudy was stacking plates and packing up supplies, she thought about her finance accounting dass at YSU and began to think about the...

  • Hello could you help me solve this accounting 1 question asap ? The last photo is...

    Hello could you help me solve this accounting 1 question asap ? The last photo is the requirements Bennington, Inc., collects cash from customers in advance and from other customers after the sale. Read the requirement a. Journalize Bennington earning service revenue of $15,000 on account and then collecting $14,000 on account. (Record debits first, then credits Exclude explanations from any journal entries.) Start by recording Bennington earning $15,000 of service revenue on account. Journi Entry Date Accounts Debit Credit...

  • On September 1, 2017, Marin Inc. sold goods to Bramble Corp., a new customer. Before shipping...

    On September 1, 2017, Marin Inc. sold goods to Bramble Corp., a new customer. Before shipping the goods, Marin’s credit and collections department conducted a procedural credit check and determined that Bramble is a high-credit-risk customer. As a result, Marin did not provide Bramble with open credit by recording the sale as an account receivable. Instead, Marin required Bramble to provide a non–interest-bearing promissory note for $35,800 face value, to be repaid in one year. Bramble has a credit rating...

  • Brandlin Company of Anaheim, California, sells parts to a foreign customer on December 1, 2017, with...

    Brandlin Company of Anaheim, California, sells parts to a foreign customer on December 1, 2017, with payment of 16,000 korunas to be received on March 1, 2018. Brandlin enters into a forward contract on December 1, 2017, to sell 16,000 korunas on March 1, 2018. Relevant exchange rates for the koruna on various dates are as follows: Date Spot Rate Forward Rate (to March 1, 2018) December 1, 2017 $ 3.40 $ 3.475 December 31, 2017 3.50 3.600 March 1,...

  • Situation I On January 1, 2017, Tamarisk, Inc signed a fixed-price contract to have Builder Associates...

    Situation I On January 1, 2017, Tamarisk, Inc signed a fixed-price contract to have Builder Associates construct a major plant facility at a cost of $4,215,000. It was estimated that it would take 3 years to complete the project, Also on January 1, 2017, to finance the construction cost Tamarisk borrowed $4,215,000 payable in 10 annual stallments of $421,500, plus interest at the rate of 10%. Dunng 2017 Tar ansk made deposit and progress payments totaling $1,580,625 under the contract;...

  • Glencoe Inc. operates with a June 30 year-end. During 2017, the following transactions occurred: January 1:...

    Glencoe Inc. operates with a June 30 year-end. During 2017, the following transactions occurred: January 1: Signed a one-year, 10% loan for $25,000. Interest and principal are to be paid at maturity. January 10: Signed a line of credit with Little Local Bank to establish a $400,000 line of credit. Interest of 9% will be charged on all borrowed funds. February 1: Issued a $20,000 non-interest-bearing, six-month note to pay for a new machine. Interest on the note, at 12%,...

  • Situation I On January 1, 2017, Tamarisk, Inc. signed a fixed-price contract to have Builder Associates...

    Situation I On January 1, 2017, Tamarisk, Inc. signed a fixed-price contract to have Builder Associates construct a major plant facility at a cost of $4,215,000. It was estimated that it would take 3 years to complete the project. Also on January 1, 2017, to finance the construction cost, Tamansk borrowed $4,215 000 Payable in 10 annual installments of $421 500 plus interest at the rate of 10% During 2017 Tamarisk made deposit and progress Payments totaling S1 580,625 under...

  • On January 1, Year 1, Greenbriar Corporation issues callable bonds at face amount that pay 8%...

    On January 1, Year 1, Greenbriar Corporation issues callable bonds at face amount that pay 8% interest. The company is most likely to call the bonds if the market interest rate: 1. On November 28, 2021, Shocker receives a $1,650 payment from a customer for services to be rendered evenly over the next three months. Deferred Revenue is credited. 2. On December 1, 2021, the company pays a local radio station $2,130 for 30 radio ads that were to be...

  • Pastina Company sells various types of pasta to grocery chains as private label brands. The company’s...

    Pastina Company sells various types of pasta to grocery chains as private label brands. The company’s reporting year-end is December 31. The unadjusted trial balance as of December 31, 2021, appears below. Account Title Debits Credits Cash 33,800 Accounts receivable 42,000 Supplies 2,500 Inventory 62,000 Notes receivable 22,000 Interest receivable 0 Prepaid rent 2,200 Prepaid insurance 7,000 Office equipment 88,000 Accumulated depreciation 33,000 Accounts payable 33,000 Salaries payable 0 Notes payable 52,000 Interest payable 0 Deferred sales revenue 3,000 Common...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT