Exercise 4-15 (Algo) Notes receivable—interest accrual and collection LO 6, 7 On April 1, 2019, Tabor Co. received an $5,400 note from a customer in settlement of an $5,400 account receivable from that customer. The note bore interest at the rate of 12% per annum, and the note plus interest was payable March 31, 2020. Required: Use the horizontal model to show the effects (+ for addition and − for subtraction) of each of these transactions and adjustments: Receipt of the note on April 1, 2019. The accrual of interest at December 31, 2019. The collection of the note and interest on March 31, 2020.
Exercise 4-15 (Algo) Notes receivable—interest accrual and collection LO 6, 7 On April 1, 2019, Tabor Co. received an $5,400 note from a customer in settlement of an $5,400 account receivable from that customer. The note bore interest at the rate of 12% per annum, and the note plus interest was payable March 31, 2020. Required: Use the horizontal model to show the effects (+ for addition and − for subtraction) of each of these transactions and adjustments: Receipt of the note on April 1, 2019. The accrual of interest at December 31, 2019. The collection of the note and interest on March 31, 2020.
Pfin (with Mindtap, 1 Term Printed Access Card) (mindtap Course List)
7th Edition
ISBN:9780357033609
Author:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk
Publisher:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk
Chapter2: Using Financial Statements And Budgets
Section: Chapter Questions
Problem 1LO
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Exercise 4-15 (Algo) Notes receivable—interest accrual and collection LO 6, 7
On April 1, 2019, Tabor Co. received an $5,400 note from a customer in settlement of an $5,400 account receivable from that customer. The note bore interest at the rate of 12% per annum, and the note plus interest was payable March 31, 2020.
Required:
Use the horizontal model to show the effects (+ for addition and − for subtraction) of each of these transactions and adjustments:
Required:
Use the horizontal model to show the effects (+ for addition and − for subtraction) of each of these transactions and adjustments:
- Receipt of the note on April 1, 2019.
- The accrual of interest at December 31, 2019.
- The collection of the note and interest on March 31, 2020.
Transcribed Image Text:Transaction
Type of financial statement
Accounts
Amount
a.
b.
C.
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