On October 1, Year 1 Hernandez Company loaned $60,000 cash to Acosta Company. The one-year note carried a 6% rate of interest. Which of the following shows how the December 31, Year 1 recognition of accrued interest will affect Hernandez's financial statements? Assets A. 900 B. 900 C. 2,700 D. 2,700 Multiple Choice Balance Sheet Liabilities + ΝΑ OOO O Option A Option C Option D Option B ΝΑ ΝΑ ΝΑ Stockholders' Equity 900 900 2,700 2,700 Income Statement Revenue 900 900 2,700 2,700 Net Expense = Income ΝΑ 900 900 2,700 2,700 NA ΝΑ NA Statement of Cash Flows 900 IA ΝΑ 2,700 IA NA
On October 1, Year 1 Hernandez Company loaned $60,000 cash to Acosta Company. The one-year note carried a 6% rate of interest. Which of the following shows how the December 31, Year 1 recognition of accrued interest will affect Hernandez's financial statements? Assets A. 900 B. 900 C. 2,700 D. 2,700 Multiple Choice Balance Sheet Liabilities + ΝΑ OOO O Option A Option C Option D Option B ΝΑ ΝΑ ΝΑ Stockholders' Equity 900 900 2,700 2,700 Income Statement Revenue 900 900 2,700 2,700 Net Expense = Income ΝΑ 900 900 2,700 2,700 NA ΝΑ NA Statement of Cash Flows 900 IA ΝΑ 2,700 IA NA
Chapter9: Accounting For Receivables
Section: Chapter Questions
Problem 22MC: A company collects an honored note with a maturity date of 24 months from establishment, a 10%...
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