Agrico, Inc., accepted a 10-month, 13.8% (annual rate), $4,500 note from one of its customers on June

Question:

Agrico, Inc., accepted a 10-month, 13.8% (annual rate), $4,500 note from one of its customers on June 15; interest is payable with the principal at maturity.

Required:

a. Use the horizontal model or write the entry to record the interest earned by Agrico during its fiscal year ended October 31.

b. Use the horizontal model or write the journal entry to record collection of the note and interest at maturity.

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Accounting What the Numbers Mean

ISBN: 978-0073527062

9th Edition

Authors: David H. Marshall, Wayne W. McManus, Daniel F. Viele,

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Question Posted: Mar 13, 2012 07:41 AM

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Agrico, Inc., accepted a 10-month, 13.8% (annual rate), $4,500 note from one of its customers on June

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a b Solution approach What accounts are affected and how are they affect...View the full answer

Accounting What the Numbers Mean

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