Jasper makes a $33,000, 90-day, 7.5% cash loan to Clayborn Co.Jasper's entry to record the...

Jasper makes a $33,000, 90-day, 7.5% cash loan to Clayborn Co. Jasper's entry to record the collection of the note and interest at maturity should be: (Use 360 days a year.)

Multiple Choice

Debit Cash $35,475; credit Interest Revenue $2,475, credit Notes Receivable $33,000.
Debit Notes Payable $33,000; Debit Interest Expense $2,475; credit Cash $35,475.
Debit Cash for $33,000; credit Notes Receivable $33,000.
Debit Cash $33,618.75; credit Notes Receivable for $33,618.75.
Debit Cash $33,618.75; credit Interest Revenue $618.75; credit Notes Receivable $33,000.

Solutions

Expert Solution

	Principal Amount of Notes Receivable	$ 33,000.00
	Interest for 360 days	$ 2,475.00
	Interest for 90 days	$ 618.75

	So amount received will be	$ 33,618.75



	Entry will be as follows

Date	Account Ledger	Debit	Credit
	Cash	$ 33,618.75
	Notes Receivable		$ 33,000.00
	Interest Revenue		$ 618.75
	( Notes Receivable received and 90- days interest Received)

ekkarill92 answered 1 year ago

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