On October 1,2017,Android,Inc

question 107

Multiple Choice

On October 1,2017,Android,Inc.made a loan to one of its customers.The customer signed a 4-month note for $110,000 at 12%.How much interest revenue did the company record in the year 2017? (Round any intermediate calculations to two decimal places,and your final answer to the nearest dollar. )

• A)$1,320
• B)$1,100
• C)$4,400
• D)$3,300

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Definitions:

Adjusting Entries

Journal entries made in accounting records at the end of an accounting period to allocate income and expenditures to the period in which they actually occurred.

Accrued Interest

The interest that has been earned but not yet received or paid in cash, applicable in both investment and borrowing contexts.

Balance Sheet

A report detailing a company's assets, liabilities, and equity of shareholders at a certain moment.

Accounts Payable Turnover Ratio

A liquidity metric that measures how quickly a company pays off its suppliers.