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13. Bright Co. holds Park Co.'s $20,000, 120 day, 9% note. The entry made by Bright Co. when the note is collected, assuming no interest has previously been accrued is:

Cash 20,000
Notes Receivable 20,000

Accounts Receivable 20,600
Notes Receivable 20,000
Interest Revenue 600

Cash 20,600
Notes Receivable 20,000
Interest Revenue 600

Accounts Receivable 20,600
Notes Revenue 20,000
Interest Revenue 600

14. A building with an appraisal value of $137,000 is made available at an offer price of $142,000. The purchaser acquires the property for $30,000 in cash, a 90-day note payable for $40,000, and a mortgage amounting to $60,000. The cost basis recorded in the buyer's accounting records to recognize this purchase is _______.
$137,000
$142,000
$130,000
$100,000

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This solution is comprised of a detailed explanation to record the journal entry for Bright Co. and answer what is the cost basis recorded in the buyer's accounting records to recognize this purchase.

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13. Bright Co. holds Park Co.'s $20,000, 120 day, 9% note. The entry made by Bright Co. when the note is collected, assuming no interest has previously been accrued is:

Cash 20,000
Notes Receivable 20,000

Accounts ...

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