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Blake Company Loaned Jiminez Corporation $18,000 on October 1,2016

Question 130

Essay

Blake Company loaned Jiminez Corporation $18,000 on October 1,2016.The 8-month note carried a 6% rate of interest.
Required: a)How will Blake report the note and interest on its 2016 income statement,balance sheet,and statement of cash flows?
b)How will Blake report the note and interest on its 2017 income statement and statement of cash flows?

Correct Answer:

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a)In 2016,Blake will report $270 of inte...

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