On September 1, Year 1 Western Company loaned $36,000 cash to Eastern Company. The one-year note carried a 5% rate of interest. The amount of interest revenue on the income statement and the amount of cash flow from operating activities shown on Western's December 31, Year 1 financial statements would be
A.$600 interest revenue and $1,800 cash flow from operating activities.
B.$1,200 interest revenue and $1,800 cash flow from operating activities.
C.$600 interest revenue and zero cash flow from operating activities.
D.$1,200 interest revenue and zero cash flow from operating activities.
Answers (1)
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “On September 1, Year 1 Western Company loaned $36,000 cash to Eastern Company. The one-year note carried a 5% rate of interest. The amount ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers
You Might be Interested in
Suppose that an economy consists of only two individuals. Jeremy has $1830 available to spend on goods. He decides to purchase $930 worth of produce from Michele in the current quarter.
Answers (1)
Blythe Corp. is a defendant in a lawsuit. Blythe's attorneys believe it is reasonably possible that the suit will require Blythe to pay a substantial amount. What is the proper financial statement treatment for this contingency?
Answers (2)
Raine Company has a machine that originally cost $58,000. Depreciation has been recorded for four years using the straight-line method, with a $5,000 estimated salvage value at the end of an expected ten-year life.
Answers (1)
Under U. S. laws: A. Only private workers have the right to hold an election to choose what union they want to represent them, if any. B. Only public workers have the right to hold an election to choose what union they want to represent them, if any.
Answers (1)
Twenty-six years ago, several small vineyard owners in california joined voluntarily to market their grapes and wine in an attempt to get better prices.
Answers (1)
New Questions in Business
Employers bond employees who handle cash receipts because fidelity bonds reduce the possibility of employing dishonest individuals and Deter dishonesty by making employees aware that insurance companies may investigate and prosecute dishonest acts.
Answers (1)
1. A complaint of sexual harassment by a part-time worker in a hardware business was upheld when the Tribunal found that the employer had failed to take sufficient action in relation to the employee's report of inappropriate behaviour.
Answers (1)
Suppose that the government sets a price floor for milk that is above the competitive equilibrium price With the price floor, consumers are willing to purchase the quantity indicated where the price floor intersects the With the price floor, the
Answers (1)
Choose the best revision of the previous sentence. Because many executives have access to company jets boards of directors have a responsibility to ensure that shareholders are not footing the bill for personal travel.
Answers (1)
Who puts the federal budget together?
Answers (1)