posted by Maddie .
Interest on a $20000 one-year 10 percent note payable dated October 1 2007 was not recorded. The 10 percent interest is payable on the maturity date of the noteWhat is the interest income
What is the maturity date?
20,000*0.1=2,000 is the interest income, since the note is for one year, so the percentage should be applied to the principal amount.
If you have any questions in future related to accounting, economics and other business studies, just visit my virtual office at Liveperson website. search for Accounting Troubleshooter and get fast and accurate answer