On September 1, 2021, Middleton Corp. lends cash and accepts a $10,000 note receivable that offers 18% interest and is due in six months. How much interest revenue will Middleton Corp. report during 2022? (Do not round intermediate calculations. Round your answer to the nearest dollar amount.)

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16 November, 22:13

On September 1, 2021, Middleton Corp. lends cash and accepts a $10,000 note receivable that offers 18% interest and is due in six months. How much interest revenue will Middleton Corp. report during 2022? (Do not round intermediate calculations. Round your answer to the nearest dollar amount.)

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Easton Combs · Answer 1

Interest revenue yr2022 = $300

Explanation:

From Sep 1 to end of year 2021, Middleton Corp. will have accrued interest for 4 months; meaning, the following year (2022), the interest revenue to be recorded will be for the remaining 2 months.

Therefore,

Interest revenue yr2022 = $10000 * 18% * 2/12

Interest revenue yr2022 = $300