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On July 1, 2021, a company loans one of its employees $29,000 and accepts a eight-month,...

On July 1, 2021, a company loans one of its employees $29,000 and accepts a eight-month, 6% note receivable.

Calculate the amount of interest revenue the company will recognize in 2021 and 2022. (Do not round intermediate calculations. Round your final answers to the nearest whole dollar.)

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  • Amount of interest revenue to be recognised in 2021 = $ 29000 x 6% x 6 months/12 = $ 870 [Jul to Dec = 6 months]
  • Amount of interest revenue to be recognised in 2022 = $ 29000 x 6% x 2 remaining months / 12 = $ 290
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