Question: how is this answer C? 8. On November 1, 2019, Young Corporation loaned $100,000 to Zebra Company on a 6-month note receivable. The note has

how is this answer C?
how is this answer C? 8. On November 1, 2019, Young Corporation

8. On November 1, 2019, Young Corporation loaned $100,000 to Zebra Company on a 6-month note receivable. The note has a due date of May 1, 2020 and has a 6% annual interest rate. Young properly made an adjusting entry on December 31, 2019 to accrue the interest revenue for November and December, 2019. What is the amount of interest revenue that should be shown on Young Corporation income statement for 2019 and 2020? a. $0 in 2019; $3,000 in 2020. b. $1,500 in 2019; $1,500 in 2020. C. $1,000 in 2019; $2,000 in 2020. d. $2,000 in 2019; $4,000 in 2020

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!

Q:

What motivates a parent to bribe key people to get their kid admitted to a prestigious university? That is the ethical question of Operation Varsity Blues. In March 2019, the story broke of an...

Q:

8. On November 1, 2019, Young Corporation loaned $100,000 to Zebra Company on a 6-month note receivable. The note has a due date of May 1, 2020 and has a 6% annual interest rate. Young properly made...

Q:

Accounting Creations was authorized to issue 3,000,000 shares of $1 par Common Stock but has only issued 650,000 shares of common stock as of 12/31/2018. No new shares were issued during 2018. 1.On...

Q:

choose the best answer Question 11 On June 1, 2020, SATELLA FINANCIAL loaned SUBARU Corporation P30,000,000 on a 12% note, payable in five annual installments of 6,000,000 beginning January 2, 2021....

Q:

Accounting Creations was authorized to issue 3,000,000 shares of $1 par Common Stock but has only issued 650,000 shares of common stock as of 12/31/2018. No new shares were issued during 2018. 1.On...

Q:

Accounting Creations Incorporated creates accounting games and literature to enhance accounting education and financial literacy. Their business has been quite successful since their incorporation in...

Q:

Accounting Creations was authorized to issue 3,000,000 shares of $1 par Common Stock but has only issued 650,000 shares of common stock as of 12/31/2018. No new shares were issued during 2018. 1. On...

Q:

Accounting Creations Incorporated creates accounting games and literature to enhance accounting education and financial literacy. Their business has been quite successful since their incorporation in...

Q:

Can you please solve only J, K, L, S & T Accounting Creations was authorized to issue 3,000,000 shares of $1 par Common Stock but has only issued 650,000 shares of common stock as of 12/31/2018. No...

Q:

On the designated worksheet, prepare in journal entry form all adjusting and correcting journal entries based on the following information (round all numbers to the nearest dollar). Letter entries to...

Q:

Q1. On November 1, 2019, Edwin Inc. borrowed cash and signed a $60,000, 1-year note payable. Required: 1. Compute the following items assuming (a) an interest-bearing note at 12%, (b) a...

Q:

A mixture of N2, H2 and NH3 is at equilibrium according to the equation N2(g) + 3H2(g) 2NH3(g) as depicted below. The volume is suddenly decreased (by increasing the external pressure), and a new...

Q:

The economic life of the defender can be obtained if certain estimates about the defender can be made. Assuming those estimates prove to be exactly correct, one can accurately predict the year when...

Q:

13. What is a low-value lease? Describe lessee accounting for low-value leases.

Q:

a=2 b= 0 c= 2 d=0 e=0 f=9 g=3 5. Draw the Network diagram for the following project. Estimate the Earliest start time and Latest finish time for each activity. If every day it cost 200 rials for this...