On December 1, 2017, Falcon, Inc sold machinery to a customer for $25,000
The customer could not pay at the time of sale but agreed to pay 11 months later and signed a 11-month note at 8% interest. How much interest revenue was earned for the entire term of the note? (Round your answer to the nearest dollar.)
A) $1,833
B) $1,670
C) $167
D) $2,000
A .($25,000 x 8%) x 11/12 = $1,833
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Forward prices for gold, in dollars per ounce, for the next five years are 305, 333, 360, 388, and 425, respectively. A mine can be opened for 3 years at a cost of $600. Annual mining costs are a constant $100 and interest rates are 5.0%
When should the mine be opened to maximize NPV? A) Year 1 B) Year 2 C) Year 3 D) Never
Sure Enuf, Inc. paid $4,800 on May 1, 2012 for 12 months' insurance coverage starting May 1. How much prepaid insurance should appear on the company's balance sheet at December 31, 2012?
A) $4,800 B) $1,600 C) $1,000 D) $3,200