Cyprus Corp.received a 7%,six-month promissory note with a face amount of $8,000 from Mustafa Company for the sale of merchandise on May 1,2017.Cyprus' accounting year-end is December 31.

Required
How much interest income will Cyprus Corp.recognize over the term of the note?

Question

Cyprus Corp.received a 7%,six-month promissory note with a face amount of $8,000 from Mustafa Company for the sale of merchandise on May 1,2017.Cyprus' accounting year-end is December 31.
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Required
How much interest income will Cyprus Corp.recognize over the term of the note?

Quizplus · Accepted Answer

The Answer of Cyprus Corp.received a 7%,six-month promissory note with a face amount of $8,000 from Mustafa Company for the sale of merchandise on May 1,2017.Cyprus' accounting year-end is December 31.
​
Required
How much interest income will Cyprus Corp.recognize over the term of the note?