On May 1, Year 1, Benz's Sandwich Shop loaned $12,000 to Mark Henry for one year at 9 per interest. Required: a. What is Benz's interest income for Year 1? b. What is Benz's total amount of receivables at December 31, Year 1? c. How will the loan and interest be reported on Benz's Year 1 statement of cash flows? d. What is Benz's interest income for Year 2? e. What is the total amount of cash that Benz's will collect in Year 2 from Mark Henry? f. How will the loan and interest be reported on Benz's Year 2 statement of cash flows? g. What is the total amount of interest that Benz's earned on the loan to Mark Henry? Note: For all requirements, round your answers to the nearest dollar amount. Answer is not complete. a. b. C. d. e. f. Interest income Receivables Cash used in investing activities Interest income Cash Cash provided by operating activities ✓ f. Cash provided by investing activities g. Interest earned
On May 1, Year 1, Benz's Sandwich Shop loaned $12,000 to Mark Henry for one year at 9 per interest. Required: a. What is Benz's interest income for Year 1? b. What is Benz's total amount of receivables at December 31, Year 1? c. How will the loan and interest be reported on Benz's Year 1 statement of cash flows? d. What is Benz's interest income for Year 2? e. What is the total amount of cash that Benz's will collect in Year 2 from Mark Henry? f. How will the loan and interest be reported on Benz's Year 2 statement of cash flows? g. What is the total amount of interest that Benz's earned on the loan to Mark Henry? Note: For all requirements, round your answers to the nearest dollar amount. Answer is not complete. a. b. C. d. e. f. Interest income Receivables Cash used in investing activities Interest income Cash Cash provided by operating activities ✓ f. Cash provided by investing activities g. Interest earned
Chapter9: Accounting For Receivables
Section: Chapter Questions
Problem 22MC: A company collects an honored note with a maturity date of 24 months from establishment, a 10%...
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