Question

Question text

On December 1, 2016, Cybele Company accepts a $24,000, 90 day, 8% note from a customer. If Cybele Company’s accounting period ends on December 31, and the note is collected on March 1, 2017, which one of the following statements will be true for Cybele Company?

Select one:

A. On December 31, 2016, they will credit Interest Receivable for $160

B. On March 1, 2017, they will credit Interest Receivable for $160

C. On December 31, 2016, they will debit Interest Income for $160

D. On March 1, 2017, they will credit Interest Income for $160

Answer 1

	interest accured on dec
	24000*8%*1/12
	160
	answer) option B
	on march 1,2017 they will credit interest receivable
	for $160