On August 1, 2010, Ace Corporation Accepted a Note Receivable $\begin{array} { | l | r | r | } \hline \text { Cash } & 123,965.00 & \\\hline \text { Notes Receivable } & & 123,965.00 \\\hline\end{array}$

question 40

Multiple Choice

On August 1, 2010, Ace Corporation accepted a note receivable in place of an outstanding accounts receivable in the amount of $123,965. The note is due in 90 days and has an interest rate of 8%. What would be the appropriate journal entry to record the receipt of cash at the maturity date?

• A)\(\begin{array} { | l | r | r | }
• \hline \text { Cash } & 123,965.00 & \\
• \hline \text { Notes Receivable } & & 123,965.00 \\
• \hline
• \end{array}\)
• B)\(\begin{array} { | c | r | r | }
• \hline \text { Notes Receivable } & 123,965.00 & \\
• \hline \text { Accounts Receivable } & & 123,965.00 \\
• \hline
• \end{array}\)
• C)\(\begin{array} { | l | r | r | }
• \hline \text { Notes Receivable } & 123,965.00 & \\
• \hline \text { Interest Revenue } & 2,479.30 & \\
• \hline \text { Cash } & & 126,444.30 \\
• \hline
• \end{array}\)
• D)\(\begin{array} { | l | r | r | }
• \hline \text { Cash } & 123,965.00 & \\
• \hline \text { Interest Receivable } & 2,479.30 & \\
• \hline \text { Notes Receivable } & & 126,444.30 \\
• \hline
• \end{array}\)
• E)\(\begin{array} { | l | r | r | }
• \hline \text { Cash } & 126,444.30 & \\
• \hline \text { Interest Receivable } & & 2,479.30 \\
• \hline \text { Notes Receivable } & & 123,965.00 \\
• \hline
• \end{array}\)

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Definitions:

Dynamic Equilibrium

Dynamic equilibrium occurs when the rate of forward reaction equals the rate of the reverse reaction in a chemical system, resulting in the concentrations of reactants and products remaining constant over time.

Equilibrium Constant

A mathematical expression that relates the concentrations of reactants and products in a chemical reaction at equilibrium.

Ph

A measure that provides insight into the acidity or basicity level of an aqueous solution; values range from 0 (very acidic) to 14 (very basic).

Hemoglobin

A red protein responsible for transporting oxygen in the blood of vertebrates, its molecule comprises four subunits, each containing an iron atom.