Mike is the payee of a $20,000, 180-day, 8% note. On maturity, the note maker fails to pay.

Start networking and exchanging professional insights

Register now or log in to join your professional community.

Next Question:
Bank fees are a good source of income for banks.Do you agree?
Posted by:
Subhranshu Ganguly
13-December-2013

How much interest income should Mike receive on the dishonored note?

Accounting Account Handling Financial Accounting Bookkeeping

Question added by Muhammad Ramzan Tufail ACCA , Assistant Finance Manager , Eltizam Asset Management Group
Date Posted: 2015/03/25

Upvote (0) Views (4) Followers (2) Answers (1) Report Question

Write an Answer
Register now or log in to answer.

1 Answers

by Deleted user

Mike should receive $20,000 plus $800 interest at maturity = $20,800

20000 x8% x6/12 months =800.

Downvote Reply () Report

Popular Searches

Sales Executive Jobs Engineers Jobs Engineering Technicians Jobs Accountant Jobs Driver Jobs

Write Your Answer

More Questions Like This

WHAT IS THE MAXIMUM DURATION LIMIT FOR USANCE LETTER OF CREDIT .IS THERE ANY RBI RESTRICTION OF 180 DAYS?
Top Answer: There is no specified rule for maximum credit period, credit can be availed for full 365 days. however ma ... See More

Answers (2)
If the holding period yield on a Treasury bill (T-bill) with 197 days until maturity is 1.07%, what is the effective annual yield?
Top Answer: as per my calculation it will be1.99% See More

Answers (2)
Why is income received in advance a liability?
Top Answer: <p>Advances received by customer is a liability for the company against which work has to be comple ... See More

Answers (1)
What is interest income?
Top Answer: The term that companies use on their income statement for reporting the interest earned on cash temporari ... See More

Answers (19)

Do you need help in adding the right keywords to your CV? Let our CV writing experts help you.