Interest = Face Value * Rate of Interest * Time / Total Months
1,500 = 50,000 * Rate of Interest * 9/12
1,500 = 37,500* Rate of Interest
Rate of Interest = 1,500 / 37,500*100
= 4%
Answer = a. 4 %
The following information is available regarding the interest revenue recognized on a note receivable: Face Value...
Calculate the missing amount for each of the following notes receivable. Face Value $ 10,600 $ 26,000 $ 31,000 Annual Interest Rate - 6% 4% is Fraction of the Year 4 months months 6 months 6 months. interest 212 260 1550 660 $ $ 10% < Prey, 2 of 10 !! Next
Calculate the missing amount for each of the following notes receivable. Annual Interest Rate Interest 6% Face Value $ 10,000 $ 20,000 25,000 4% Fraction of the Year 4 months months 6 months 6 months 800 500 600 8%
Determining Sales and Interest Revenue using Long-term Note Receivable A four-year, $3,000, noninterest-bearing note was received by Willis Company for a credit sale. Assuming a market rate of 8%, determine (1) sales revenue recognized upon issuance of the note and (2) interest revenue recognized over the term of the note. Note: Round each answer to the nearest whole dollar. 1. Sales revenue 2. Interest revenue $
3. Calculate the amount of interest revenue on the following notes receivable: a. 6 month note with a principal balance of $10,000 and interest rate of 5% b. 12 month note with a principal balance of $50,000 and an interest rate of 8% C. 24 month note with a principal balance of $100,000 and an interest rate of 10%
Accounts: Cash, Interest Revenue, Sales Revenue, Notes
Receivable, Discount on Note Receivable
Problem 6 (sale with time value of money, IR On January 1, 2020, ABC sold and delivered a product to XYZ. ABC allows XYZ to delay payment for twelve months, at which time XYZ will pay ABC $20,000. ABC deems the financing component of the transaction to be significant and decides that an applicable interest rate is 10%. 1. Prepare the entry made by ABC on January 1,...
For each of the following notes receivable, compute the amount of interest revenue earned during 2020. Use a 365 day year or base your calculations on the number of months, depending on how the interest period is stated, and round only your answer to the nearest dollar Note 1 Note 2 Note 3 Note 4 Principal interest Rate $360,000 12% 46,000 30,000 15% 116,000 10% Interest Period During 2020 8 months 30 days 90 days 6 months Compute the amount...
Interest Revenue
Cypress O Company's December 31, 2021, balance sheet listed $1.074,000 of notes receivable and $24,600 of interest receivable included in current assets. The following notes make up the notes receivable balance Note 1 Dated B/31/2021, principal of $450, see and interest at 12% due on 2/28/2022. Note 2 Dated 6/30/2021, principal of $330,000 and interest due 3/31/2022. Note ) $100,eee face value noninterest-bearing note dated 9/30/2021, due 3/31/2022. Note was issued in exchange for merchandise The company records...
Madison Company issued an interest-bearing note payable with a face value of $25,200 and a stated interest rate of 8% to Metropolitan Bank on August 1, Year 1. The note carried a one-year term. Based on this information alone, what is the amount of cash flow from operating activities reported on Madison’s Year 1 statement of cash flows?
Madison Company issued an interest-bearing note payable with a face value of $11,400 and a stated interest rate of 8% to Metropolitan Bank on August 1, Year 1. The note carried a one-year term. Based on this information alone, what is the amount of cash flow from operating activities reported on Madison’s Year 1 statement of cash flows? $0 $912 $11,400 $380
For each of the following notes receivable, compute the amount of interest revenue eamed during 2018. Use a 360-day year, and round to the nearest dollar Click the icon to view the notes.) Enter the amount of interest revenue earned during 2018 for each note. Use a 360-day year. (Round your final answers to the nearest whole dollar.) Note 1 Note 2 Note 3 Note 4 i Data Table Interest Period During 2018 2 months Principal Interest Rate Note 1...