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on november 1, jasper company loaned another company $250,000 at a 12% interest rate. the note receivable plus interest will not be collected until march 1 of the following year. the company's annual accounting period ends on december 31. the amount of interest revenue that should be reported in the first year is:

Respuesta :

The amount of interest revenue that should be reported in the first year is $5000 if the Jasper company loaned the other company on November 1 at a 12% interest rate.

To determine the amount of interest revenue that should be reported in the first year, we first calculate the interest amount per year as follows;

Interest amount per year = 250,000 × 12% = 250,000 × 0.12 = $30,000

Now we calculate the interest amount per month as follows;

Interest amount per month = Interest amount per year / 12

Interest amount per month = 30,000 / 12

Interest amount per month = $2500

As the loan started on November 1, in the first year from November 1 to December 31, Jasper company has loaned another company for 2 months.

Therefore;

Interest amount per month × 2 = $5000

Hence, $5000 of interest revenue should be reported in the first year.

To learn more about interest revenue, click here:

https://brainly.com/question/19341720

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