Question: A bank customer received a loan for $13,000 in exchange for a 7 month, 9% note on October 1, 2013, The note is due on

A bank customer received a loan for $13,000 in exchange for a 7 month, 9% note on October 1, 2013, The note is due on April 30, 2014 If the bank's accounting period ends on December 31 each year, how much interest revenue from this note should be recognized by the bank in the years 2013 and 2014?

Step by Step Solution

★★★★★

3.56 Rating (146 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

29250 390 Explanation To calculate the in... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!

Information necessary to prepare the year-end adjusting entries appears below. Depreciation on the office equipment for the year is $10,000. Employee salaries are paid twice a month, on the 22nd for...

April Co., whose accounting period ends on December 31, purchased a machine for $7,000 on January 1 with an estimated residual value of $1,000 and an estimated useful life of 10 years. Prepare...

On October 1, 2013, Eagle Company forecasts the purchase of inventory from a British supplier on February 1, 2014, at a price of 100,000 British pounds. On October 1, 2013, Eagle pays $1,800 for a...

Can someone tell me what the Income from operations and Interest expense is? I have attached the income statement Created by EDGAR Online, Inc. NIKE INC TABLE1 Form Type: 10-K Period End: May 31,...

Complete three Tax Forms (Attached blank forms 2015 schedule D, 1040 and 8949). (Refer to the instructions PDF attached): Spencer Duck (SSSN 000-22-111) is single and his eight year old son, Mitch,...

Please see the attached file. There is an instruction file and SGP annual report for use as reference. Also I attached the Powerpoint which is mentioned from the instruction too. MS 6405 Advance...

Need ONLY an answer to Part C, step 1, questions 1 and 3. Term Project Part A: Understanding Financial Statements Locate and use an annual report STEP 1: The Company Assigned to you Find the most...

download in the attach file and work on...

1.Which of the following below is NOT an element of internal control? a. risk assesment b. monitoring c. information and communication d. behavior analysis ANSWER:D 2. Which of the following below is...

Adult business communications ( ABC ) provides social media marketing and consultation services for its clients. The following transactions occurred in December 2017. Transactions up to November 30...

Approximate the integral (1+ *)e-3*, dr based on values of 3 i.i.d. Uniform (0, 1) [10 points] random variables.

Calculate RBS Company's Reorder Point (ROP), including safety stock, for their top selling Pen Set using the following information: Demand (D) is 1,500 Pen Sets per month (1 month - 30 days). ...

When preparing fund - based financial statements, what account should be debited when office equipment is ordered? Multiple Choice Appropriations Encumbrances Vouchers Payable Expenditures Fund...

According to the U.S. Department of Education, the following are the numbers, in millions, of college degrees awarded in various years since 1970. Year 1970 1980 1985 1990 1995 1998 2000 2001 2002...

1. Set up and solve a differential equation that models the following situation: An aquarium holds 5000 gallons of water. It is maintained with a pumping system that pumps in 100 gallons of water per...

Consider a country with zero capital account balance. It is a net lender during the period in which the nation has a financial account __, and/or a current account ___.

4. The Unknown Sample Solution will contain between 40% and 70% soluble Chloride lon in grams. Assuming a initial mass of 0.2 grams of unknown sample in solution and 0.2 M solution of Silver Nitrate...

Consider the following proposed extension to an AVLTree class. T is any type. Wed like to add a method T firstAfter(T v) that, given a value v, returns the least element of the set that is v. If no...

how have societal movements and/or cultural factors shaped the development of behaviorism

From the following T-accounts, record the following: (a) The July 3 payment for FICA (OASDI and Medicare) and federal income taxes, (b) The July 30 payment of SUTA tax, (c) The July 30 deposit of any...

Use transaction analysis charts to analyze the following adjustments: a. Depreciation on equipment, $500. b. Rent expired, $200.

Match the following to the three business transactions (more than one number can be used). 1. Recorded to the accounts payable subsidiary ledger. 2. Recorded to the general journal. 3. Posted to the...

=+b. Construct a scatterplot in which the axes intersect at (55, 100), as was done in the cited article. Does this plot seem preferable to the one in part (a)? Explain your reasoning.

=+ Construct a scatterplot of the data. How would you describe the nature of the relationship between the two variables?

=+c. What do the plots of parts (a) and (b) suggest about the nature of the relationship between the two variables?