On January 1 a promissory note receivable was received by Overland Company in the amount of $56,200. It is a two month note bearing interest at 18% per annum. Overland follows proper accrual accounting and generates monthly financials. When the note matures it is dishonoured and interest is due on the maturity date.

Required 1: Assuming no other transaction happened, what is the interest income reported on the annual Income Statement of March 1st? $

Required 2: Assuming no other transaction happened, what is the interest receivable as of February 1st? $

Required 3: Assuming no other transaction happened, what is the balance of Notes Receivables on March 1st? $

Answer rating: 100% (QA)

Here are the answers Required 1 Interest income reported on the annual ... View the full answer