6 Notes receivable-accrued interest LO 5-4 a.What is Peppers interest income for
ID: 2419098 • Letter: 6
Question
6 Notes receivable-accrued interest LO 5-4
a.What is Peppers interest income for 2014? (Do not round intermediate calculations and round your final answer to nearest whole dollar amount.) INTEREST INCOME ( )
b What is Peppers total amount of receivables at December 31, 2014? (Do not round intermediate calculations and round your final answer to nearest whole dollar amount.)
TOTAL RECEIVABLES ( )
d What is Peppers interest income for 2015? (Do not round intermediate calculations and round your final answer to nearest whole dollar amount.) INTEREST INCOME ( )
e What is the total amount of cash that Peppers will collect in 2015 from Simms Supply?
TOTAL CASH ( )
What is the total amount of interest Peppers Deli earned from the loan to Simms Supply?
TOTAL INTEREST EARNED ( )
c What amounts will be reported on Peppers 2014 statement of cash flows? (Enter cash outflows as negative amounts.)
Operating activities inflow or ______________
Operating activities outflow or ________________
Investing activities inflow or _________________
Investing activities outflow or _________________
Financing activities inflow or ________________
Financing activities outflow or ________________
On March 1, 2014, Peppers Deli loaned $20,000 to Simms Supply for one year at 8 percent interest.Explanation / Answer
a. Interest income for 2014 is only 10 months , march to december
Hence interest= 20000*8%*10/12= $1333.33
b.Total receivables as on 31 dec, 2014= 20000+1333.33= $21333.33
d. Interest income for 2015= 2months only
interest= 20000*8%*2/12= $266.67
e. Total cash to be received in 2015= 20000+1333.33+266.67= $21600
g. Total interest earned= $1600
Amount in 2014 cash flow is operating activity cash outflow= (-)20000.
Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.