On November 1, 2010, Salem Corporation sold land priced at $900,000 in exchange for a 6%, six-month note receivable. As a result of this sale of land, what will Salem's Balance Sheet on December 31, 2010 include

Note receivables of $900,000 & Interest receivable of $9,000

Explanation:

As a result of this sale of land, what will Salem's Balance Sheet on December 31, 2010 include?

Interest receivable = $900,000*6%*2/12

Interest receivable = $900,000 * 0.01

Interest receivable = $9,000

So, Salem's Balance Sheet on December 31, 2010 will include Note receivables of $900,000 and Interest receivable of $9,000.

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so, to answer your question 1.

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- courtney