On July 1, 2012, a company loans one of its employees $20,000 and accepts a nine-month, 8% note receivable. Calculate the amount of interest revenue the company will recognize in 2012 and 2013.

Name: On July 1, 2012, a company loans one of its employees $20,000 and accepts a nine-month, 8% note receivable. Calculate the amount of interest revenue the company will recognize in 2012 and 2013.
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Question

Quizplus · Accepted Answer

2012: $20,000 $\times$ 8% $\times$ 6/12 = $800.
2013: $20,000 $\times$ 8% $\times$ 3/12 = $400.

On July 1, 2012, a Company Loans One of Its