On November 1, 2022, Roberts Inc. provided consulting services in exchange for a one-year, 10% promissory note with a face value of $30,000. The note is interest-bearing. The note’s face value plus accrued interest compounded annually is due to be paid back when the nature matures on November 1, 2023. What should be the amount of “Service Revenue” Roberts recognizes in 2022? $33,000 $30,000 $27,273 $27,000
On November 1, 2022, Roberts Inc. provided consulting services in exchange for a one-year, 10% promissory note with a face value of $30,000. The note is interest-bearing. The note’s face value plus accrued interest compounded annually is due to be paid back when the nature matures on November 1, 2023. What should be the amount of “Service Revenue” Roberts recognizes in 2022? $33,000 $30,000 $27,273 $27,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
On November 1, 2022, Roberts Inc. provided consulting services in exchange for a one-year, 10% promissory note with a face value of $30,000. The note is interest-bearing. The note’s face value plus accrued interest compounded annually is due to be paid back when the nature matures on November 1, 2023.
What should be the amount of “Service Revenue” Roberts recognizes in 2022?
$33,000
$30,000
$27,273
$27,000
Expert Solution
Step 1
Unearned Revenue: Unearned Revenue means money received from the customer in advance for the service which is not yet performed or for the goods which are not yet sold. An unearned Revenue is an liability for the money receiver upto the service is not performed or goods are not transferred.
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