Question : 96.Jasper makes a $25,000, 90-day, 7% cash loan to Clayborn : 1237026

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.