Agrico, Inc., accepted a 6-month, 9% (annual rate), $8,000 note from one of its customers on November 1, 2019; interest is payable with the principal at maturity.
Required:
a.Use the horizontal model or write the journal entry to record the interest earned
by Agrico during its year ended December 31, 2019.
b.Use the horizontal model or write the journal entry to record collection of the note
and interest at maturity.

Question

Quizplus · Accepted Answer

The Answer of Agrico, Inc., accepted a 6-month, 9% (annual rate), $8,000 note from one of its customers on November 1, 2019; interest is payable with the principal at maturity.
Required:
a.Use the horizontal model or write the journal entry to record the interest earned
by Agrico during its year ended December 31, 2019.
b.Use the horizontal model or write the journal entry to record collection of the note
and interest at maturity.