On September 1, Year 1, Western Company loaned $39,600 cash to Eastern Company. The one-year note carried a 6% rate of Interest. The amount of Interest revenue on theIncome statement and the amount of cash flow from operating activities shown on Western's December 31, Year 1, financial statements would be:Multiple ChoiceO$792 Interest revenue and zero cash flow from operating activities.$1,584 Interest revenue and zero cash flow from operating activities.$1,584 Interest revenue and $2,376 cash flow from operating activities.$792 Interest revenue and $2,376 cash flow from operating activities.

Cash flow from operating activities indicates the cash inflow or outflow transactions related to the…

On September 1, Year 1, Western Company loaned $39,600 cash to Eastern Company. The one-year note carried a 6% rate of Interest. The amount of Interest revenue on the Income statement and the amount of cash flow from operating activities shown on Western's December 31, Year 1, financial statements would be: Multiple Choice $792 Interest revenue and zero cash flow from operating activities. $1,584 Interest revenue and zero cash flow from operating activities. $1,584 Interest revenue and $2,376 cash flow from operating activities. $792 Interest revenue and $2,376 cash flow from operating activities.

On September 1, Year 1, Western Company loaned $39,600 cash to Eastern Company. The one-year note carried a 6% rate of Interest. The amount of Interest revenue on the Income statement and the amount of cash flow from operating activities shown on Western's December 31, Year 1, financial statements would be: Multiple Choice $792 Interest revenue and zero cash flow from operating activities. $1,584 Interest revenue and zero cash flow from operating activities. $1,584 Interest revenue and $2,376 cash flow from operating activities. $792 Interest revenue and $2,376 cash flow from operating activities.

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

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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