35. Interest nest reeue for 2015 is $120,000. Interest payable increased $43,000

Question

35. Interest nest reeue for 2015 is $120,000. Interest payable increased $43,000 during the year and Interest receivable year and interest receivable increased $50,000 during the year. No discount or premium was amortized. What is the cash received for interest revenue? A$77,000 B $120,000 C.$170,000 D.$70,000 36. A company purchased a parcel of land using a long-term note payable. Using the direct method, where is this transaction reported on the statement of cash flows? A.financing activities B noncash investing and financing activities C operating activities D.investing activities

Explanation / Answer

35) Answer : D. $70000

Detail : Interest payable is nothing to do with cash received of the Interest revenue. So, Interest Revenue - increase in Interest receivable = Cash received of the interest revenue. $120000 - $50000 = $70000

36) Answer ; B. noncash investing and financing activities

Detail : Investing = decease in cash of land purchase and Financing = increase in cash of issue of long-term note payable. Thus, land is purchase of issue of long-term note payale.

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