Question

Interest on a $20000 one-year 10 percent note payable dated October 1 2007 was not recorded. The 10 percent interest is payable on the maturity date of the noteWhat is the interest income

Answer 1

What is the maturity date?

Answer 2

20,000*0.1=2,000 is the interest income, since the note is for one year, so the percentage should be applied to the principal amount.

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