Note receivable: Note receivable refers to a written promise by a debtor for the amounts to be received within a stipulated period of time. This written promise is issued by a debtor or borrower to the lender or creditor. Notes receivable is an asset of a business. Interest on note: Interest on note is the amount charged on the principal value of note for the privilege of borrowing money. Interest is to be paid by the borrower and to be received by the lender. The amount of interest on notes receivables can be calculated using the following formula: Interest = Principal × Rate of interest × Interest period The amount of interest revenue earned during 2016, for each of the notes receivable.

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Chapter 8, Problem 8.9SE

To determine

Note receivable:

Note receivable refers to a written promise by a debtor for the amounts to be received within a stipulated period of time. This written promise is issued by a debtor or borrower to the lender or creditor. Notes receivable is an asset of a business.

Interest on note:

Interest on note is the amount charged on the principal value of note for the privilege of borrowing money. Interest is to be paid by the borrower and to be received by the lender.

The amount of interest on notes receivables can be calculated using the following formula:

Interest = Principal×Rate of interest×Interest period

The amount of interest revenue earned during 2016, for each of the notes receivable.

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