On March 1, 2012, Bayonne Services made a loan to one of its officers. The officer signed a 6-month note for $4,000 at 8%. Bayonne generally accrues interest at year-end only, so at the time the note matured, Bayonne had not accrued any interest revenue. On September 1, when the note matured, the officer settled in full with the company. Please provide the journal entry made by Bayonne when the note was settled.
Definitions:
Value Added
Value Added refers to the increase in value that a business creates by undergoing a production process, calculated as the difference between the cost of raw materials and the price of the finished product.
Income Approach
A method of calculating GDP that sums up total national income, including wages, rent, interest, and profits.
Consumer Price Index (CPI)
An indicator used to gauge inflation by examining the weighted average prices of a selection of consumer products and services.
Circular Flow
A model that illustrates the movement of goods, services, and money among households, businesses, government, and the foreign sector in an economy.
Q7: Under the direct write-off method, a customer
Q42: A strong computer firewall is an essential
Q55: On January 1, 2012, a company buys
Q70: A company purchased 100 units for $20
Q84: What is freight out?<br>A)Transportation costs to ship
Q95: In a system of good internal control,
Q112: Which of the following describes the internal
Q124: Which of the following describes the internal
Q130: Which of the following is a benefit
Q147: A company that uses the perpetual inventory