On September 1, 2019, Lexington Corp. accepted a $12,000 face value note as evidence of a loan made to Anderson Ltd. The note carries an interest rate of 8% and has a one-year term. What is the interest revenue recognized by Lexington Corp. in 2019?

On September 1, 2019, Lexington Corp. accepted a $12,000 face value note as evidence of a loan made to Anderson Ltd. The note carries an interest rate of 8% and has a one-year term. What is the interest revenue recognized by Lexington Corp. in 2019?

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter14: Financing Liabilities: Bonds And Long-term Notes Payable

Section: Chapter Questions

Problem 28E: On January 1, 2019, Northfield Corporation becomes delinquent on a 100,000, 14% note to First...

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Question

I need the correct answer to this general accounting problem using the standard accounting approach.

On September 1, 2019, Lexington Corp. accepted a $12,000
face value note as evidence of a loan made to Anderson Ltd.
The note carries an interest rate of 8% and has a one-year
term.
What is the interest revenue recognized by Lexington Corp.
in 2019?

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