On September 1, Year 1, Western Company loaned $39,200 cash to Eastern Company....
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Accounting
On September 1, Year 1, Western Company loaned $39,200 cash to Eastern Company. The one-year note carried a 6% rate of interest. The amount of interest revenue on the income statement and the amount of cash flow from operating activities shown on Westerns December 31, Year 1, financial statements would be:
Multiple Choice
$784 interest revenue and zero cash flow from operating activities.
$1,568 interest revenue and $2,352 cash flow from operating activities.
$1,568 interest revenue and zero cash flow from operating activities.
$784 interest revenue and $2,352 cash flow from operating activities.
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