Question : 96. Jasper makes a $25,000, 90-day, 7% cash loan to Clayborn : 1257981

96. Jasper makes a $25,000, 90-day, 7% cash loan to Clayborn Co. The amount of interest that Jasper will collect on the loan is: 
A. $1,750.
B. $145.83.
C. $437.50.
D. $19.44.
E. $875.00.

97. Jasper makes a $25,000, 90-day, 7% cash loan to Clayborn Co. Jasper’s entry to record the collection of the note and interest at maturity should be: 
A. Debit Cash for $25,000; credit Notes Receivable $25,000.
B. Debit Cash $25,437.50; credit Interest Revenue $437.50; credit Notes Receivable $25,000.
C. Debit Cash $25,437.50; credit Notes Receivable for $25,437.50.
D. Debit Notes Payable $25,000; Debit Interest Expense $1,750; credit Cash $26,750.
E. Debit Cash $26,750; credit Interest Revenue $1,750, credit Notes Receivable $25,000.

98. Lemming makes an $18,750, 120-day, 8% cash loan to Notions Co. on November 2. Lemming’s end-of-period adjusting entry on December 31 should be: 
A. Debit Cash for $250; credit Notes Receivable $250.
B. Debit Interest Revenue $500; credit Notes Receivable $500.
C. Debit Interest Receivable $250; credit Interest Revenue $250.
D. Debit Interest Receivable $500; credit Interest Revenue $500.
E. Debit Notes Receivable $500; credit Interest Revenue $500.

99. The amount due on the maturity date of a $6,000, 60-day 4%, note receivable is: 
A. $6,000.
B. $6,240.
C. $5,760.
D. $6,040.
E. $5,960.

100. Giorgio Italian Market bought $4,000 worth of merchandise from Food Suppliers and signed a 90-day, 6% promissory note for the $4,000. Food Supplier’s journal entry to record the sales transaction is: 
A. Debit Accounts Receivable $4,000; credit Sales $4,000
B. Debit Notes Receivable $4,000; credit Sales $4,000
C. Debit Accounts Receivable $4,060; credit Sales $4,060
D. Debit Notes Receivable $4,060; credit Sales $4,060
E. Debit Notes Receivable $4,000; debit Interest Receivable $60; credit Sales $4,060

101. Giorgio Italian Market bought $4,000 worth of merchandise from Food Suppliers and signed a 90-day, 6% promissory note for the $4,000. Food Supplier’s journal entry to record the collection on the maturity date is: 
A. Debit Cash $4,060; credit Notes Receivable $4,060
B. Debit Notes Receivable $4,000; credit Cash $4,000
C. Debit Cash $4,000; debit Interest Receivable $60; credit Sales $4,000
D. Debit Notes Receivable $4,060; credit Sales $4,060
E. Debit Cash $4,060; credit Interest Revenue $60; credit Notes Receivable $4,000

102. Jax Recording Studio purchased $7,800 in electronic components from Music World. Jax signed a 60-day, 8% promissory note for $7,800. Music World’s journal entry to record the sales transaction is: 
A. Debit Accounts Receivable $7,800; credit Sales $7,800
B. Debit Accounts Receivable $7,904; credit Sales $7,904
C. Debit Notes Receivable $7,800; credit Sales $7,800
D. Debit Notes Receivable $7,904; credit Sales $7,904
E. Debit Notes Receivable $7,800; debit Interest Receivable $104; credit Sales $7,904

103. Jax Recording Studio purchased $7,800 in electronic components from Music World. Jax signed a 60-day, 8% promissory note for $7,800. Music World’s journal entry to record the collection on the maturity date is: 
A. Debit Cash $7,800; credit Accounts Receivable $7,800
B. Debit Accounts Receivable $7,904; credit Notes Receivable $7,800; credit Interest Receivable $104
C. Debit Notes Receivable $7,800; credit Cash $7,904; credit Interest Revenue $104
D. Debit Cash $7,904; credit Notes Receivable $7,800; credit Interest Revenue $104
E. Debit Cash $7,904; credit Notes Receivable $7,904

104. Honoring a note receivable indicates that the maker has: 
A. Signed.
B. Paid in full.
C. Guaranteed.
D. Notarized.
E. Cosigned.

105. Failure by a promissory notes’ maker to pay the amount due at maturity is known as: 
A. Protesting a note.
B. Closing a note.
C. Dishonoring a note.
D. Discounting a note.
E. Depreciating a note.