On October 1, Black Company receives a 10% interest-bearing note from Reese Company to settle a...

On October 1, Black Company receives a 10% interest-bearing note from Reese Company to settle a $22,600 account receivable. The note is due in six months. At December 31, Black should record interest revenue of

a.$572

b.$565

c.$575

d.$562

Please answer it asap

Expert Solution

Solution:
	CALCULATION OF TOTAL INTEREST RVENUE RECOGNISED AS ON DECEMBER 31
		Interest Revenue At December 31	Interest Revenue Maturity	Total Interest Revenue
	Principal value of note Receivable	$ 22,600	$ 22,600	$ 22,600
	Rate %	10%	10%	10%
	Time (In Months)	3	3	6
	Total Interest	$ 565	$ 565	$ 1,130

	Interest revenue recongnized upto december 31 is for 3 months only (October , November & December)

	As per above calculation interest revenue is $ 565 on note receivable upto December 31

	Answer = Option B = $ 565

ekkarill92 answered 1 year ago

Oriole Company receives a $78,000, 10-year note bearing interest of 9% (paid annually) from a customer...

Oriole Company receives a $78,000, 10-year note bearing interest of 9% (paid annually) from a customer at a time when the discount rate is 11%. (For calculation purposes, use 5 decimal places as displayed in the factor table provided.) What is the present value of the note received by Oriole? (Round answer to 2 decimal places, e.g. 25.25.) Present value of note received = ??

Crane Company receives a $64,000, 7-year note bearing interest of 12% (paid annually) from a customer...

Crane Company receives a $64,000, 7-year note bearing interest of 12% (paid annually) from a customer at a time when the discount rate is 8%.

How is Interest-Bearing Note different from Non-Interest Bearing Note? How are the journal entries different for...

How is Interest-Bearing Note different from Non-Interest Bearing Note? How are the journal entries different for each of them? Provide examples of each joirnal entry.

On January 1, 2018 Kimmel Company accepts a $53000 non interest bearing note from a customer...

On January 1, 2018 Kimmel Company accepts a $53000 non interest bearing note from a customer for services provided. The note is to be paid in 4 equal installments every 6 months (payments every July 1 and January 1 with the first payment on July 1, 2018) An assumed interest rate of 9% is implied. Round installments to the nearest dollar. A) Prepare an amortization table for this note. Round amounts to the nearest dollar. Clearly label your rows with...

#207 Sam Company had an interest-bearing note receivable in the face amount of $7,800. This note...

#207 Sam Company had an interest-bearing note receivable in the face amount of $7,800. This note was created on March 1, Year 1, as the result of a $7,800 sales transaction by Sam. The note's interest rate and due date were 7% and February 1, Year 2, respectively. The principal and all of the interest are to be collected in full on the note's due date. On September 1, Year 1, Sam found itself in need of cash and opted...

On Jan. first, 2018, Snuff Company accepts 60000 non-interest bearing note from a customer for the...

On Jan. first, 2018, Snuff Company accepts 60000 non-interest bearing note from a customer for the sale of goods. The note is to be paid in 3 equal installments every Dec. 31st (first payment on Dec. 31, 2018). An assumed interest rate of 10% is implied. Round installment payments to the nearest dollar. pt 1: Determine the PV of the note. Show all computations or calculator imputs. pt 2: Prepare an amortization table in Excell to show the revenue recognized...

1. The journal entry to record the payment at maturity of an interest-bearing note is A....

1. The journal entry to record the payment at maturity of an interest-bearing note is A. debit Accounts Payable; credit Cash B. debit Notes Payable and Interest Receivable; credit Cash C. debit Notes Payable and Interest Expense; credit Cash D. debit Cash; credit Notes Payable 2. The entry to record the issuance of common stock at a price above par includes a debit to A. Common Stock B. Paid-In Capital in Excess of Par—Common Stock C. Cash D. Organizational Expenses...

On January 2, SHB Company receives a 3-year, $10,000, noninterest bearing note, the present value of...

On January 2, SHB Company receives a 3-year, $10,000, noninterest bearing note, the present value of which is $7,722. The rate implicit on this transaction is 9%. You are completing SHB's note receivable account. To prepare each required journal entry: Enter the corresponding debit or credit amount in the associated column. Round all amounts to the nearest whole number. Not all rows in the table might be needed to complete each journal entry. If no journal entry is needed, check...

On October 1, 2020, Mertag Company (a U.S.-based company) receives an order from a customer in...

On October 1, 2020, Mertag Company (a U.S.-based company) receives an order from a customer in Poland to deliver goods on January 31, 2021, for a price of 1,028,000 Polish zlotys (PLN). Mertag enters into a forward contract on October 1, 2020, to sell PLN 1,028,000 in four months (on January 31, 2021). U.S. dollar–Polish zloty exchange rates are as follows: Date Spot Rate Forward Rate (to January 31, 2021) October 1, 2020 $ 0.28 $ 0.32 December 31, 2020...

Company A received a five year $25,000 note bearing interest of 3%. The market rate of...

Company A received a five year $25,000 note bearing interest of 3%. The market rate of the note is 2.5%. What amount of interest revenue will the company record at the end of the first year

Question