QUESTION 44 Saved A 120day 1296 note receivable for 2500 was

QUESTION 44 Saved A 120-day, 1296 note receivable for $2,500 was received from a customer on November 1. The adjustment to Interest Receivable on December 31 would be: $50. $100 $300 O $0, since none is receivable. $2,500 QUESTION 45 A 90-day, 129 note payabl,000 was issued on December 1 for a loan received from a bank. The austment to Interest Payable on December 31 would be: O $30. $120 $60. $10. $880

Solution

44) Interest receivable on december 31 = 2500*12%*60/360 = 50

So answer is a) $50

45) Interest payable = 1000*12%*30/360 = $10

So answer is d) $10