On April 1, 2010, Wild Flowers loans $20,000 to its subsidiary, Domestic Flowers

Question

On April 1, 2010, Wild Flowers loans $20,000 to its subsidiary, Domestic Flowers, under a 4-year, 6% note, with interest due each March 31. Which one of the following is the amount of interest receivable that should be recorded by AJE by Wild Flowers at December 31, 2011 [the 2nd annual balance sheet date after the loan is made]?

Which one of the following is correct (true) with respect to the entry recorded on March 31, 2012, when the 2nd interest payment is made?

A. Interest Receivable will be credited $900
B. Cash will be credited $300
C. Interest Revenue will be credited $1,200
D. Notes Receivable will be credited $1,200

Explanation / Answer

On April 1, 2010, Wild Flowers loans $20,000 to its subsidiary, Domestic Flowers, under a 4-year, 6% note, with interest due each March 31. Which one of the following is the amount of interest receivable that should be recorded by AJE by Wild Flowers at December 31, 2011 [the 2nd annual balance sheet date after the loan is made]? Interest Receivable will be recorded $900 Which one of the following is correct (true) with respect to the entry recorded on March 31, 2012, when the 2nd interest payment is made? A. Interest Receivable will be credited $900

Related Questions

Navigate

• Browse (All)
• Browse O
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.