Survey Of Accounting
5th Edition
ISBN: 9781259631122
Author: Edmonds, Thomas P.
Publisher: Mcgraw-hill Education,
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Textbook Question
Chapter 5, Problem 12E
On May 1, 2018, Benz’s Sandwich Shop loaned $10,000 to Mark Henry for one year at 6 percent interest.
Required
Answer the following questions:
- a. What is Benz’s interest income for 2018?
- b. What is Benz’s total amount of receivables at December 31, 2018?
- c. How will the loan and interest be reported on Benz’s 2018 statement of
cash flows ? - d. What is Benz’s interest income for 2019?
- e. What is the total amount of cash that Benz’s will collect in 2019 from Mark Henry?
- f. How will the loan and interest be reported on Benz’s 2019 statement of cash flows?
- g. What is the total amount of interest that Benz’s earned on the loan to Mark Henry?
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On May 1, Year 1, Benz's Sandwich Shop loaned $12,000 to Mark Henry for one year at 9 percent
interest.
Required:
a. What is Benz's interest income for Year 1?
b. What is Benz's total amount of receivables at December 31, Year 1?
c. How will the loan and interest be reported on Benz's Year 1 statement of cash flows?
d. What is Benz's interest income for Year 2?
e. What is the total amount of cash that Benz's will collect in Year 2 from Mark Henry?
f. How will the loan and interest be reported on Benz's Year 2 statement of cash flows?
g. What is the total amount of interest that Benz's earned on the loan to Mark Henry?
Note: For all requirements, round your answers to the nearest dollar amount.
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Interest income
Receivables
Cash used in investing activities
Interest income
Cash
Cash provided by operating activities
Cash provided by investing activities
Interest earned
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Chapter 5 Solutions
Survey Of Accounting
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