Question

On October 1, 2021, Oberley Corporation loans one of its employees $36,000 and accepts a 12-month, 9% note receivable. Calculate the amount of interest revenue Oberley will recognize in 2021 and 2022.

Answer 1

=810+2430 => $3240.

Step-by-step explanation:

For the year 2021, the employee will only have to pay the remaining 3-month interest i.e, October, November and December (36000 * 9% * (3/12)), which becomes 810.

For the year 2022, the employee has to pay the remaining 9-month interest (36000 * 9% * (9/12)), which becomes 2430.

So the total interest revenue becomes = 810+2430 = 3240.

Hope this helps.

Goodluck.