Compute the amount of interest during 2014, 2015, and 2016 for the following note receivable: On May 31, 2014, Main Street Bank lent $220,000 to Ron Rowlette on a two-year, 5% note.
2. Which party has a (an)
a. Note receivable?
b. Note payable?
c. Interest revenue?
d. Interest expense?
3. How much in total would Main Street Bank collect if Ron Rowlette paid of the note early—say, on November 30, 2014?