Question : 111. Harper Company lends Hewell Company $20,000 March 1, accepting a : 1234143

111. Harper Company lends Hewell Company $20,000 on March 1, accepting a four-month, 6% interest note. Harper Company prepares financial statements on March 31. What adjusting entry should be made before the financial statements can be prepared? 
A. Cash                                           100
           Interest Revenue                                         100
B. Interest Receivable                              300
           Interest Revenue                                         300
C. Interest Receivable                              100
           Interest Revenue                                         100
D. Note Receivable                             20,000
           Cash                                                        20,000

112. Bright Co. holds Park Co.’s $20,000, 120 day, 9% note. The entry made by Bright Co. when the note is collected, assuming no interest has previously been accrued is: 
A. Cash                                                     20,000
           Notes Receivable                                              20,000
B. Accounts Receivable                              20,600
           Notes Receivable                                              20,000
           Interest Revenue                                                   600
C. Cash                                                       20,600
           Notes Receivable                                              20,000
           Interest Revenue                                                     600
D. Accounts Receivable                                 20,600
           Notes Revenue                                                   20,000
           Interest Revenue                                                      600

113. Receivables are usually listed on the balance sheet after Cash in what order? 
A. Accounts Receivable, Notes Receivable, Interest Receivable
B. Interest Receivable, Notes Receivable, Accounts Receivable
C. Notes Receivable, Interest Receivable, Accounts Receivable
D. Notes Receivable, Accounts Receivable, Interest Receivable

114. Receivables are usually listed in order 
A. of the due date
B. of the size
C. alphabetically
D. of liquidity

115. Accounts Receivable Turnover measures 
A. how frequently during the year the accounts receivable are converted to cash
B. the number of days outstanding
C. the fair market value of accounts receivable
D. the efficiency of the accounts payable function

116. The number of days’ sales in receivables 
A. is an estimate of the length of time the receivables have been outstanding
B. measures the number of times the receivables turn over each year
C. is Net Credit Sales divided by Average Receivables
D. is not meaningful and therefore is not used

117. In reference to a promissory note, another word for “discount” is 
A. maturity
B. sale
C. purchase
D. interest

118. The amount received by the endorser after discounting a note receivable at the bank is called the 
A. proceeds
B. maturity value
C. face value
D. realizable value

119. A 60-day, 12% note for $10,000, dated May 1, is received from a customer on account.  If the note is discounted on May 21 at 15%, the proceeds are 
A. $170
B. $9,830
C. $10,000
D. $10,030

120. A 60-day, 12% note for $10,000, dated May 1, is received from a customer on account.  If the note is discounted on June 10 at 15%, the proceeds are 
A. $10,115
B. $10,200
C. $10,000
D. $10,030