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
icon
Related questions
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 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
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 3 steps

Blurred answer
Knowledge Booster
Accounting for Notes
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
Recommended textbooks for you
Intermediate Accounting: Reporting And Analysis
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
Cornerstones of Financial Accounting
Cornerstones of Financial Accounting
Accounting
ISBN:
9781337690881
Author:
Jay Rich, Jeff Jones
Publisher:
Cengage Learning
Principles of Accounting Volume 1
Principles of Accounting Volume 1
Accounting
ISBN:
9781947172685
Author:
OpenStax
Publisher:
OpenStax College
Financial Accounting
Financial Accounting
Accounting
ISBN:
9781305088436
Author:
Carl Warren, Jim Reeve, Jonathan Duchac
Publisher:
Cengage Learning