Question

QUESTION 41 2 po Moon Company paid Beam Company for merchandise with a $9,000, 90-day, 10% note dated December 11, 2016. What

0 0
Add a comment Improve this question Transcribed image text
Answer #1

Solution:

Interest receivable for 20 days (from 12 dec to 31 dec) = $9000*10%*20/360 = $50

Therrfore journal entry:

Interest Receivable 50
Interest Income 50

Hence, option "C" is correct.

Add a comment
Know the answer?
Add Answer to:
QUESTION 41 2 po Moon Company paid Beam Company for merchandise with a $9,000, 90-day, 10% note dated December 11, 2...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

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
  • ID: A 9. A 60-day, 10% note for $9,000, dated the note is We note for...

    ID: A 9. A 60-day, 10% note for $9,000, dated the note is We note for $9.000, dated April 15, is received from a customer on account. The face value of a. $9.850 b. $7,200 c. $9.900 $9,000 A 60-day, 12% note for $10.000 dated May is received from a customer on account. The maturity value of the note is a. $10,000 b. S10,200 c. $200 d. $9,800 10. 11. The number of days' sales in receivables a. is an...

  • The following selected transactions are from Springer Company. 2014 Accepted a $4,800, 90-day, 8% note dated...

    The following selected transactions are from Springer Company. 2014 Accepted a $4,800, 90-day, 8% note dated this day in granting Steve Julian a time extension on his past-due account receivable. Nov. 1 Dec. 31 Made an adjusting entry to record the accrued interest on the Julian note. 2015 Jan. Feb. 30 Received Julian's payment for principal and interest on the note dated November 1. 28 Accepted a $12,600, 30-day, 8% note dated this day in granting a time extension on...

  • 2016 Dec. 13 Accepted a $20,000, 45-day, 8% note dated December 13 in granting Miranda Lee...

    2016 Dec. 13 Accepted a $20,000, 45-day, 8% note dated December 13 in granting Miranda Lee a time extension on her past-due account receivable. 31 Prepared an adjusting entry to record the accrued interest on the Lee note. 2017 Jan. 27 Received Lee's payment for principal and interest on the note dated December 13. Mar. 3 Accepted a $14,000, 8%, 90-day note dated March 3 in granting a time extension on the past-due account receivable of Tomas Company. 17 Accepted...

  • The following selected transactions are from Ohlm Company 2014 Accepted a $10,800, 60-day, 8% note dated...

    The following selected transactions are from Ohlm Company 2014 Accepted a $10,800, 60-day, 8% note dated this day in granting Danny Todd a time extension on his past-due account receivable. Dec. 16 31 Made an adjusting entry to record the accrued interest on the Todd note 2015 Feb. 14 Received Todd's payment of principal and interest on the note dated December 16 Mar. 2 Accepted a $6,100, 89, 90-day note dated this day in granting a time extension on the...

  • The following selected transactions are from Ohlm Company 2014 Accepted a $10.800, 60-day, 8% note dated...

    The following selected transactions are from Ohlm Company 2014 Accepted a $10.800, 60-day, 8% note dated this day in granting Danny Todd a time extension on his past-due account receivable. Dec. 16 31 Made an adjusting entry to record the accrued interest on the Todd note 2015 Feb. 14 Received Todd's payment of principal and interest on the note dated December 16 Mar. 2 Accepted a $6,100, 89, 90-day note dated this day in granting a time extension on the...

  • Question Help On December 1. Macy Company sold merchandise with a selling price of $9,000 on...

    Question Help On December 1. Macy Company sold merchandise with a selling price of $9,000 on account to Mrs. Jorgensen, with terms 4/10, 1/30. On December 3, Mrs. Jorgensen returned merchandise with a selling price of $700. Mrs. Jorgensen paid the amount due on December 9. What journal entry did Macy Company prepare on December 9 assuming the gross method is used? O A. Debit Cash for $7.968 and credit Accounts Receivable for $7.968 O B. Debit Sales Revenue for...

  • 2016 Dec. 16 Accepted a $14,500, 60-day, 9% note dated this day in granting Danny Todd...

    2016 Dec. 16 Accepted a $14,500, 60-day, 9% note dated this day in granting Danny Todd a time extension on his past-due account receivable. 31 Made an adjusting entry to record the accrued interest on the Todd note. 2017 Feb. 14 Received Todd's payment of principal and interest on the note dated December 16. Mar. 2 Accepted a(n) $7,200, 98, 90-day note dated this day in granting a time extension on the past-due account receivable from Midnight Co. 17 Accepted...

  • Valley Designs issued a 90-day, 6 note for $36,000, dated April 19, to Bark Furniture Company on account.

    Entries for Notes Receivable Valley Designs issued a 90-day, 6 note for $36,000, dated April 19, to Bark Furniture Company on account. Assume 360 days in a year when computing the interest. a. Determine the due date of the note b. Determine the maturity value of the note.c1. Journalize the entry to record the receipt of the note by Bork Furniture. If an amount box does not require an entry, leave it blank.c2. Souralire the entry to record the receipt of payment of...

  • please help!!! Check my work 2016 Dec. 16 Accepted a $14,700, 60-day, 98 note dated this...

    please help!!! Check my work 2016 Dec. 16 Accepted a $14,700, 60-day, 98 note dated this day in granting Danny Todd a time extension on his past-due account receivable. 31 Made an adjusting entry to record the accrued interest on the Todd note. 2017 Feb. 14 Received Todd's payment of principal and interest on the note dated December 16. Mar. 2 Accepted ain) $6,700, 91, 90-day note dated this day in granting a time extension on the past-due account receivable...

  • A company borrowed $11,000 by signing a 90-day promissory note at 10%. The total interest due...

    A company borrowed $11,000 by signing a 90-day promissory note at 10%. The total interest due on the maturity date is: (Use 360 days a year.) Multiple Choice $275.00 $1,100.00 $27.50 $412.50 $137.50 Marlow Company purchased a point of sale system on January 1 for $6,700. This system has a useful life of 5 years and a salvage value of $1,050. What would be the depreciation expense for the second year of its useful life using the double-declining-balance method? Multiple...

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