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Point 1: On October 31, Y1, CDE Inc. sold a piece of equipment in exchange for a short-term, six month, $20,000, 3% note receivable with principle and interest due on April 30, Y2. (Because this is a short-term note, no present value calculations are necessary. The note is recorded at face value and the stated interest rate is used to calculate all interest.)
Question 1: How much interest revenue will CDE record in the April 30, Y2 journal entry, assuming all earlier adjusting entries are recorded correctly?
$200
$100
$300
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$600
Financial Statement Analysis and Preparation
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