Question

.On February 1, 2018, Middleton Corp. lends cash and accepts a $1,000 note receivable that offers 12% interest and is due in six months. How much interest revenue will Middleton Corp. report during 2018?

Answer 1

Answer:

interest revenue that Middleton Corp. report during 2018 is $20

Explanation:

given data

cash and accepts = $1,000

interest rate = 12% = 0.12

time = 6 month

to find out

How much interest revenue will report during 2018

solution

we get here Interest revenue that is report during 2018 as

Interest revenue report = $1000 × 12 % ×  $\frac{2}{12}$

Interest revenue report = $1000  × 0.12  ×  $\frac{1}{6}$

Interest revenue report =  $20

so interest revenue that Middleton Corp. report during 2018 is $20