OnAugust1,2016, Azore,Inc.,soldequipmentandacceptedasix-month, 8%,$30,000notereceivable. Azore's year-endisDecember31.Whichofthefollowingaccountswill Azore, Inc., creditinthejournalentryatmaturityonFebruary1,2017,assumingcollectioninfull?
A. Cash
B. InterestPayable
C. NotePayable
D. InterestReceivable
On August 1, 2016, Azore, Inc., sold equipment and accepted a six-month, 8%, $30,000 note receivable. Azore's year-end is December 31. How much interest revenue should Azore accrue on December 31, 2016?
A. $1,550
B. $2,400
C. $1,200
D. $1,000
On August 1, 2016, Azore, Inc., sold equipment and accepted a six-month, 8%, $30,000 note receivable. Azore's year-end is December 31. How much interest does Azore, Inc., expect to collect on the maturity date (February 1, 2017)?
A. $1,200
B. $2,400
C. $200
D. $2,000
OnAugust1,2016, Azore,Inc.,soldequipmentandacceptedasix-month, 8%,$30,000notereceivable. Azore's year-endisDecember31. If Azore, Inc., fails to make an adjusting entry for the accrued interest on December 31, 2016,
A. net income will be overstated and assets will be overstated.
B. net income will be understated and assets will be understated.
C. net income will be understated and liabilities will be overstated.
D. net income will be overstated and liabilities will be understated.