Question

Cypress Oil Company's December 31, 2013, balance sheet listed $645,000 of notes receivable and $16,000 of interest receivable included in current assets. The following notes make up the notes receivable balance:

Note 1 Dated 8/31/2013, principal of $300,000 and interest at 10% due on 2/28/2014.
Note 2 Dated 6/30/2013, principal of $150,000 and interest due 3/31/2014.
Note 3

$200,000 face value noninterest-bearing note dated 9/30/2013, due 3/31/2014. Note was issued in exchange for merchandise.

The company records adjusting entries only at year-end. There were no other notes receivable outstanding during 2013.

Answer 1

43545151