Valix Finacc vol 1 Problem 6-22

Financial Accounting Volume 1 2008 Valix-Peralta
Chapter 1 Problem 6-22

Jan.   1  Notes receivable                                                              600,000

                       Sales                                                                                                   540,000

                       Unearned interest income                                                                    60,000

Dec. 31  Cash                                                                                 200,000

                       Notes receivable                                                                                200,000

         31  Unearned interest income                                                 30,000

                       Interest income                                                                                               30,000

                            Year             Notes receivable         Fraction           Interest income

                                        2008                      600,000                    6/12                     30,000

                            2009                      400,000                    4/12                     20,000

                            2010                      200,000                    2/12                     10,000

                                                      1,200,000                                                60,000