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.
