Ask Question
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.)

+1
Answers (1)
  1. 16 November, 22:18
    0
    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
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “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. ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers