Question

On February 1, 2021, Rosalind Corp. lends cash and accepts a $3,800 note receivable that offers 10% interest and is due in six months. How much interest revenue will Rosalind Corp. report during 2021? (Do not round intermediate calculations.)

Answer 1

Answer:

$190

Explanation:

Interest Revenue is the form of income which is earned by lending some money or investing in debt securities.

As the Note is issued on February 1, 2021 and it will expire on August 1, 2021.

As both dates lies in 2021, so all the interest earned from note receivable will be reported as interest revenue.

Interest Revenue = $3,800 x 10% x 6/12 = $190