Salem's balance sheet at December 31, 2010 includes which of the following as a result of the sale of land on November 1?
A) Notes Receivable of $900,000 and Interest Receivable of $9,000.
B) Notes Receivable of $927,000 and Interest Receivable of $9,000.
C) Notes Receivable of $900,000 and Interest Receivable of $27,000.
D) Notes Receivable of $900,000 only.

Question

Quizplus · Accepted Answer

The sale of land resulted in a notes receivable of $900,000. Since the sale occurred on November 1 and the balance sheet is as of December 31, interest for two months (November and December) would have accrued, resulting in an interest receivable of $9,000.

Salem's Balance Sheet at December 31, 2010 Includes Which of the Following