6. On 1/1/2018, Jambo Group makes a loanto Marie Co. and receives in exchange afive-year, $50,000 note bearing interest at 6percent annually (on 31/12 of every year).The market rate of interest for a note ofsimilar risk is 12 percent.Calculate the amount of Interest revenuethat will be recognized on 31/12/2018.

Interest revenue that will be recognized can be computed as follows:

/1/2018, Jambo Group makes a loa to Marie Co. and receives in exchange a five-year, $50,000 note bearing interest at percent annually (on 31/12 of every year). 6. On The market rate of interest for a note of similar risk is 12 percent. Calculate the amount of Interest revenue that will be recognized on 31/12/2018.

/1/2018, Jambo Group makes a loa to Marie Co. and receives in exchange a five-year, $50,000 note bearing interest at percent annually (on 31/12 of every year). 6. On The market rate of interest for a note of similar risk is 12 percent. Calculate the amount of Interest revenue that will be recognized on 31/12/2018.

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter9: Accounting For Receivables

Section: Chapter Questions

Problem 21MC: A customer takes out a loan of $130,000 on January 1, with a maturity date of 36 months, and an...

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