Art Shoes This company received a promissory note from a customer on July 1,2012.The face amount of the note is $45,000;the terms are 12 months and 10% annual interest.
-Refer to Art Shoes.How much interest revenue will the company recognize for the year ended December 31,2012?

Question

Quizplus · Accepted Answer

The interest revenue for 6 months (from July 1 to December 31) is calculated as $45,000 * 10% * (6/12) = $2,250.

Art Shoes This Company Received a Promissory Note from a Customer