Academy Grill Supply
On October 1, 2013, the company received a $50,000 promissory note from a customer. The annual interest rate is 6%. Principal and interest will be collected in cash at the maturity date of September 30, 2013.
-Refer to Absolute Appliances. What amount should the company recognize as interest revenue on December 31, 2013?

Question

Quizplus · Accepted Answer

Since the maturity date is September 30, 2013, no interest revenue should be recognized on December 31, 2013. Therefore, the interest revenue should be $0.

Academy Grill Supply On October 1, 2013, the Company Received a $50,000 Promissory