Agrico Inc. accepted a 10-month, 12.8% (annual rate), $9,000 note from one of its customers on May

Question:

Agrico Inc. accepted a 10-month, 12.8% (annual rate), $9,000 note from one of its customers on May 15, 2019; interest is payable with the principal at maturity.

Required:

a. Use the horizontal model or write the journal entry to record the interest earned by Agrico during its year ended December 31, 2019.

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

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Related Book For answer-question

Accounting What the Numbers Mean

ISBN: 978-1260565492

12th edition

Authors: David Marshall, Wayne McManus, Daniel Viele

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Question Posted: Oct 28, 2019 06:51 AM

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Agrico Inc. accepted a 10-month, 12.8% (annual rate), $9,000 note from one of its customers on May

Question:

Step by Step Answer:

a Interest earned 9000 128 7512 720 To accrue interest earned on a shortterm ...View the full answer

Accounting What the Numbers Mean

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