Rotel purchased merchandise from TechCom on October 17, 2019. TechCom accepted Rotel's $4,800, 90-day, 10% note as payment. TechCom has a December 31st year end. What entry should TechCom make on January 15, 2020 when the note is honoured? Multiple Choice Cash 4918.36 Interest Earned 19.73 Interest Receivable 98.63 Notes Receivable 4,800 Cash 4918.36 Interest Earned 98.63 Interest Receivable 19.73 Notes Receivable 4,800 Cash 4918.36 Notes Receivable 4918.36 Cash 4918.36 Interest Earned 118.36 Accounts Receivable 4,800 Cash 4918.36 Interest Earned 118.36 Notes Receivable 4,800 The Liccorish Pizza bought $5,000 worth of merchandise from TechCom and signed a 90-day, 10% promissory note for the $5,000. TechCom's journal entry to record the transaction is Multiple Choice Notes Receivable 5,125 Sales 5,125 Accounts Receivable 5,125 Sales 5,125 Accounts Receivable 5,000 Sales 5,000 Notes Receivable 5,000 Interest Receivable 125 Sales 5,125 Notes Receivable 5,000 Sales 5,000
Rotel purchased merchandise from TechCom on October 17, 2019. TechCom accepted Rotel's $4,800, 90-day, 10% note as payment. TechCom has a December 31st year end. What entry should TechCom make on January 15, 2020 when the note is honoured? Multiple Choice Cash 4918.36 Interest Earned 19.73 Interest Receivable 98.63 Notes Receivable 4,800 Cash 4918.36 Interest Earned 98.63 Interest Receivable 19.73 Notes Receivable 4,800 Cash 4918.36 Notes Receivable 4918.36 Cash 4918.36 Interest Earned 118.36 Accounts Receivable 4,800 Cash 4918.36 Interest Earned 118.36 Notes Receivable 4,800 The Liccorish Pizza bought $5,000 worth of merchandise from TechCom and signed a 90-day, 10% promissory note for the $5,000. TechCom's journal entry to record the transaction is Multiple Choice Notes Receivable 5,125 Sales 5,125 Accounts Receivable 5,125 Sales 5,125 Accounts Receivable 5,000 Sales 5,000 Notes Receivable 5,000 Interest Receivable 125 Sales 5,125 Notes Receivable 5,000 Sales 5,000
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter14: Financing Liabilities: Bonds And Long-term Notes Payable
Section: Chapter Questions
Problem 30E
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Question
Rotel purchased merchandise from TechCom on October 17, 2019. TechCom accepted Rotel's $4,800, 90-day, 10% note as payment. TechCom has a December 31st year end. What entry should TechCom make on January 15, 2020 when the note is honoured?
Multiple Choice
-
Cash 4918.36 Interest Earned 19.73 Interest Receivable 98.63 Notes Receivable 4,800 -
Cash 4918.36 Interest Earned 98.63 Interest Receivable 19.73 Notes Receivable 4,800 -
Cash 4918.36 Notes Receivable 4918.36 -
Cash 4918.36 Interest Earned 118.36 Accounts Receivable 4,800 -
Cash 4918.36 Interest Earned 118.36 Notes Receivable 4,800 The Liccorish Pizza bought $5,000 worth of merchandise from TechCom and signed a 90-day, 10% promissory note for the $5,000. TechCom's
journal entry to record the transaction isMultiple Choice-
Notes Receivable 5,125 Sales 5,125 -
Accounts Receivable 5,125 Sales 5,125 -
Accounts Receivable 5,000 Sales 5,000 -
Notes Receivable 5,000 Interest Receivable 125 Sales 5,125 -
Notes Receivable 5,000 Sales 5,000
-
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