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The Earnings Statement of Waylon Taylor Textiles Ltd 20×720 \times 7

Question 22

Multiple Choice

The earnings statement of Waylon Taylor Textiles Ltd. for 20×720 \times 7 included the following items:

 Interest revenue $75,500 Salaries expense $65,000 Insurance expense $9,600\begin{array}{|l|r|}\hline \text { Interest revenue } & \$ 75,500 \\\hline \text { Salaries expense } & \$ 65,000 \\\hline \text { Insurance expense } & \$ 9,600 \\\hline\end{array}

The following balances have been excerpted from the company's Statement of Financial Position:

 December 31, 20X7  December 31, 20X6  Accrued interest receivable $9,100$7,500 Accrued salaries payable $8,900$4,200 Prepaid insurance $1,100$1,500\begin{array}{|l|r|r|}\hline & \text { December 31, 20X7 } & \text { December 31, 20X6 } \\\hline \text { Accrued interest receivable } & \$ 9,100 & \$ 7,500 \\\hline \text { Accrued salaries payable } & \$ 8,900 & \$ 4,200 \\\hline \text { Prepaid insurance } & \$ 1,100 & \$ 1,500 \\\hline\end{array}
-How much cash did WTT receive for interest during 20X7?


A) $75,500
B) $77,100
C) $73,900
D) $66,400

Correct Answer:

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