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AlekseyPX
4 years ago
10

Question text Calculating Accrued Interest Income on Promissory Notes Receivable Pickett Company received a 90 day, six percent

note receivable for $20,000 on November 1. How much interest income should be accrued on December 31
Business
1 answer:
klasskru [66]4 years ago
5 0

Answer:

$200

Explanation:

Given that

Note receivable = $20,000

Number of days given = 90 days

Interest rate = 6%

Calculated days from November 1 to December 31 = 60 days

Plus we assume the total number of days in a year is 360 days

So, the accrued interest income is

= Note receivable  × rate of interest × number of days ÷ (total number of days in a year)  

= $20,000 × 6% × (60 days ÷ 360 days)

= $200

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5 0
2 years ago
The 2017 balance sheet of Kerber’s Tennis Shop, Inc., showed long-term debt of $1.87 million, and the 2018 balance sheet showed
Fantom [35]

Answer:

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3 years ago
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