Monday, May 19, 2008

Interest Revenue on Note Receivable.

On October 1, 2006, Company A loaned $300,000 to Company B in exchange for a nine month, 11 percent note receivable. Company A's accounting period ends on January 1, 2007. What amount would be reported in Company A’s 2007 income statement as Interest Revenue?

Answer: $16,500

1 comment:

Anonymous said...

thank you for clearing this up, I have a similiar problem in my accounting class and could not get it. Only it is bonds sold for 600,000 at 10% for 20 years but the purchase was made in september1 to july1 semiannual payment ending dec 31.

Popular Accounting Problems

The information on this site is for informational purposes only and should not be used as a substitute for the professional advice of an accountant, tax advisor, attorney, or other professional.