rosewood company made a loan of $12,600 to one of the company's employees on april 1, year 1. the one-year note carried a 6% rate of interest. what is the amount of interest revenue that rosewood would report in year 1 and year 2 respectively?

rosewood company made a loan of $12,600 to one of the company's employees on april 1, year 1. the one-year note carried a 6% rate of interest. what is the amount of interest revenue that rosewood would report in year 1 and year 2 respectively?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Rosewood Company made a loan of $12,600 to one of the company's employees on April 1, Year 1. The one-year note carried a 6% rate of
interest. What is the amount of interest revenue that Rosewood would report in Year 1 and Year 2, respectively?

$0 in Year 1 and $756 in Year 2
O $756 in Year 1 and $0 in Year 2
O $567 in Year 1 and $189 in Year 2
O
$189 in Year 1 and $567 in Year 2

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