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On November 1, 2017, Machine Gun Kelly Company loaned Baby Face Nelson Company $20,000 and...

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Accounting

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On November 1, 2017, Machine Gun Kelly Company loaned Baby Face Nelson Company $20,000 and received a 6% interest bearing note with both interest and principal due in one year. Assuming Machine Gun's year ends December 31st, how muc Gun Kelly Company report on its year end De note? a. $1,200 b. $1,000 c. $600 d. $200 h interest revenue will Machine cember 31, 2018 income statement relative to this When preparing a bank reconciliation, which of the following would NOT require an adjusting entry in our accounting records? a. bank service charges; b. deposits in transit; c. NSF checks; d. a check written for $520, but recorded in the company records for $250. The Allowance for Doubtful Accounts is debited when: a. a customer's account becomes past due; b. a customer's account becomes bad and is written off c. a sale is made; d. management estimates the amount of uncollectible accounts at year end. Interest revenue is reported on the income statement as: a. part of operating revenue; b. part of "other' revenues and expenses; c. part of gross profit d. interest revenue is not reported on the income statement

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