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(Learning Objective 5: Account for notes receivable)
1. Compute the amount of interest during 2012, 2013, and 2014 for the following note receivable: On May 31, 2012, TMRN Bank lent $220,000 to Bob Morrison on a two-year, 8% 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 TMRN Bank collect if Bob Morrison paid off the note early—say, on November 30, 2012
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