Rinehart Company made a loan of $8,000 to one of the company's employees on April 1, 2013. The one-year note carried a 6% rate of interest. The amount of interest revenue that Rinehart would report in 2013 and 2014, respectively would be:

Question

Quizplus · Accepted Answer

$8,000 x 6% x 9/12 months = $360 interest revenue in April - December, 2013; $8,000 x 6% x 3/12 months = $120 interest revenue in January - March, 2014

Rinehart Company Made a Loan of $8,000 to One of the Company's