Question

At December 31​ year-end, Cushion Corporation has a $9,000 note receivable from a customer. Interest of 4​% has accrued for 10 months on the note. What will Cushion's financial statements report for this situation at December​ 31?

Answer 1

The financial statement will report the note receivable of the amount of $9,000 and interest receivable of $300

Step-by-step explanation:

Calculation for what Cushion's financial statements report for this situation at December​ 31

Based on the information given we were told that the Corporation has the amount of $9,000 as note receivable from a customer with an Interest of 4​% which has accrued for 10 months on the note which mean that the financial statements will report will report the note receivable of the amount of $9,000 and interest receivable of the amount of $300 at December 31 ​ which was calculated as :

Interest receivable =$9,000×0.04×10/12

Interest receivable =$300

Therefore the financial statement will report the note receivable of the amount of $9,000 and interest receivable of $300