On May 1, 2016, Benzs Sandwich Shop loaned $10,000 to Mark Henry for one year at 6
Question:
On May 1, 2016, 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 2016?
b. What is Benz’s total amount of receivables at December 31, 2016?
c. How will the loan and interest be reported on Benz’s 2016 statement of cash flows?
d. What is Benz’s interest income for 2017?
e. What is the total amount of cash that Benz’s will collect in 2017 from Mark Henry?
f. How will the loan and interest be reported on Benz’s 2017 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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a 10000 x 6 x 812 400 b Total Receivables at December ...View the full answer
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Related Book For 
Fundamental Financial Accounting Concepts
ISBN: 978-0078025907
9th edition
Authors: Thomas Edmonds, Christopher Edmonds
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