Asked by Ashley Sanchez on May 13, 2024
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For each of the following notes receivables held by Christensen Company, determine the interest revenue to be reported on the income statements for the year ended December 31. Round answers to the nearest whole dollar. Date Face Rate Term Interest Revenue Aug. 8$45,0007%45 days Oct. 7 62,000560 days Jan. 6 28,0004120 days Nov. 12 43,000660 days \begin{array} { | l | r | c | r | r | } \hline \text { Date } & \text { Face } & \text { Rate } & \text { Term } & \text { Interest Revenue } \\\hline \text { Aug. } 8 & \$ 45,000 & 7 \% & 45 \text { days } & \\\hline \text { Oct. 7 } & 62,000 & 5 & 60 \text { days } & \\\hline \text { Jan. 6 } & 28,000 & 4 & 120 \text { days } & \\\hline \text { Nov. 12 } & 43,000 & 6 & 60 \text { days } & \\\hline\end{array} Date Aug. 8 Oct. 7 Jan. 6 Nov. 12 Face $45,00062,00028,00043,000 Rate 7%546 Term 45 days 60 days 120 days 60 days Interest Revenue
Interest Revenue
Interest Revenue refers to the income earned by an entity from its lending activities or investments in interest-bearing assets.
Income Statements
These financial statements show a company's revenues, expenses, and profits over a specific period, providing insights into its financial performance.
Notes Receivables
Financial assets representing a right to receive payments from debtors under the terms of written promissory notes.
- Capture transactions involving notes receivable in financial records and calculate the interest incurred.
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Learning Objectives
- Capture transactions involving notes receivable in financial records and calculate the interest incurred.
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