Garber Company lends Newell Company $20,000 on April 1, accepting a four-month, 6% interest note. Garber Company prepares financial statements on April 30. What adjusting entry should be made before the financial statements can be prepared?
a. Note Receivable 20,000
Cash 20,000
b. Interest Receivable 100
Interest Revenue 100
c. Cash 100
Interest Revenue 100
d. Interest Receivable 300
Interest Revenue 300
Answer: B
Accounting
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- Under U.S. GAAP, a transaction that is unusual in nature and infrequent in occurrence should be reported separately as a component of income:
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- On April 30, Deer Corp. approved a plan to dispose of a component of its business. For the period January 1 through April 30, the component had revenues of $500,000 and expenses of $800,000. The assets of the component were sold on October 15 at a loss. In its income statement for the year ended December 31, how should Deer report the component's operations from January 1 to April 30?
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- How should the effect of a change in accounting principle that is inseparable from the effect of a change in accounting estimate be reported?
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- According to the IASS conceptual framework, which of the following is an underlying assumption of financial statement preparation and presentation?
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- According to the FASB conceptual framework, which of the following relates to both relevance and reliability?
- According to the FASB conceptual framework, which of the following statements conforms to the realization concept?
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- True or False? - The allowance method is required by the internal Revenue Service for tax reporting the direct write off method is required by GAAP.
- Which payroll taxes is withheld from an employee's paycheck?
- True or False? - Interest Rates are generally expressed as annual Rates ( over 12 months)
- True or False? - If you Issue a bond at a premium, you receive more than face value
- What is the formula to calculate basic interest?
- Due to the importance of earnings per share information, it is required to be reported by all Public Companies Nonpublic Companies
- What effect will the acquisition of treasury stock have on stockholders' equity and earnings per share, respectively?
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