Account for notes receivable
Response to the following:
1. Compute the amount of interest during 2014, 2015, and 2016 for the following note receivable:
On May 31, 2014, Main Street Bank lent $220,000 to Ron Rowlette on a twoyear, 5% note.
2. Which party has a (an)
a. note receivable?
b. note payable?
c. interest revenue?
d. interest expense?
3. How much in total would Main Street Bank collect if Ron Rowlette paid off the note early-say, on November 30, 2014?