On December 1, 2010, a company accepted a $6,000, 9%, 3-month note from a custom
ID: 2416513 • Letter: O
Question
On December 1, 2010, a company accepted a $6,000, 9%, 3-month note from a customer in payment of his overdue account. The company prepares year-end financial statements on December 31. What entry should the company make on March 1, 2011, when the note and interest are paid?
Cash $6,135
Notes Receivable $6,135
Cash $6.135
Notes Receivable $6,000
Interest Revenue $135
Cash $6,135
Notes Receivable $6,000
Interest Receivable $90
Interest Revenue $45
Cash $6,135
Notes Receivable $6,000
Interest Receivable $45
Interest Revenue $90
a.Cash $6,135
Notes Receivable $6,135
b.Cash $6.135
Notes Receivable $6,000
Interest Revenue $135
c.Cash $6,135
Notes Receivable $6,000
Interest Receivable $90
Interest Revenue $45
d.Cash $6,135
Notes Receivable $6,000
Interest Receivable $45
Interest Revenue $90
Explanation / Answer
Correct option is D
Cash $6,135
Notes Receivable $6,000
Interest Receivable $45
Interest Revenue $90
As one month intrest is accrued up to dec31.
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