On September 1, 2013, Geco Co. sold $40,000 of goods and accepted a one-year, 12% note.
Required:
a.If no reversing entries were made after December 31, 2013, and adjusting entries were made, record the collection of the note on September 1, 2014.
b.Assume instead that a noninterest-bearing note for $44,800 for the same goods was issued. What balance sheet accounts and amounts should be disclosed on December 31, 2013?

Question

On September 1, 2013, Geco Co. sold $40,000 of goods and accepted a one-year, 12% note.
Required: 
a.If no reversing entries were made after December 31, 2013, and adjusting entries were made, record the collection of the note on September 1, 2014.
b.Assume instead that a noninterest-bearing note for $44,800 for the same goods was issued. What balance sheet accounts and amounts should be disclosed on December 31, 2013?

Quizplus · Accepted Answer

The Answer of On September 1, 2013, Geco Co. sold $40,000 of goods and accepted a one-year, 12% note.
Required: 
a.If no reversing entries were made after December 31, 2013, and adjusting entries were made, record the collection of the note on September 1, 2014.
b.Assume instead that a noninterest-bearing note for $44,800 for the same goods was issued. What balance sheet accounts and amounts should be disclosed on December 31, 2013?