At December 31 year-end, Cushion Corporation has a $9,000 note receivable from a customer. Interest of 4% has accrued for 10 m

Question

Kazeer [188]

3 years ago

11

At December 31 year-end, Cushion Corporation has a $9,000 note receivable from a customer. Interest of 4% has accrued for 10 m

onths on the note. What will Cushion's financial statements report for this situation at December 31?

Business

1 answer:

exis [7] · Answer 1 · 2022-09-16T12:09:59+03:00

Answer:

The financial statement will report the note receivable of the amount of $9,000 and interest receivable of $300

Explanation:

Calculation for what Cushion's financial statements report for this situation at December 31

Based on the information given we were told that the Corporation has the amount of $9,000 as note receivable from a customer with an Interest of 4% which has accrued for 10 months on the note which mean that the financial statements will report will report the note receivable of the amount of $9,000 and interest receivable of the amount of $300 at December 31 which was calculated as :

Interest receivable =$9,000×0.04×10/12

Interest receivable =$300

Therefore the financial statement will report the note receivable of the amount of $9,000 and interest receivable of $300