On September 1, 2021. Sea Girt, Inc. agrees to accept a $10,000,3%, 5-month note in...
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On September 1, 2021. Sea Girt, Inc. agrees to accept a $10,000,3%, 5-month note in settlement of an existing customer balance (so the money is owed to Sea Girt). The note plus interest is due in full on February 1, 2022. At December 31, Sea Girt makes the appropriate entry to accrue interest on the note. This entry would include a debit to Interest Revenue for $100. Interest Receivable for $100. Cash for $125. Interest Receivable for $125. 167 points On November 1, 2021, Spring Lake Co. purchased a piece of land with plans to construct a new building. No plans for the building will begin until 2022 At December 31, 2021 the amount of depreciation expense recorded on the land would be equal to the cost of the land, minus any salvage value, divided by its expected useful life. No depreciation expense would be recorded on the land in 2021. The entire cost of the land would be expensed in 2021. the cost of the land, divided by its expected useful life, prorated for only 2 months out of 12 in 2021. OOOO
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