On November 1, 2000, Raceway Corporation sold land priced at $700,000 in exchange for a 12%,...
Question:
On November 1, 2000, Raceway Corporation sold land priced at $700,000 in exchange for a 12%, six-month note receivable. Raceway's balance sheet at December 31, 2000, includes which of the following as a result of the sale of land on November 1?
A) Notes Receivable of $700,000 and Interest Receivable of $14,000.
B) Notes Receivable of $742,000 and Interest Receivable of $14,000.
C) Notes Receivable of $700,000 and Interest Receivable of $42,000.
D) Notes Receivable of $700,000 only.
Current Assets:
Current assets are short-term assets that take less than a year to convert into cash. We can also refer to them as the liquid assets of a company. We use current assets to repay the current liabilities and provide for day-to-day operations.
Answer and Explanation: 1
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Correct Answer: Option A) Notes Receivable of $700,000 and Interest Receivable of $14,000.
Explanation:
Notes receivable are recorded in the...
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