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29 May, 04:21

Record the following LO 6 note receivable transactions in the journal of Mediterranean Services. How much interest revenue did Mediterranean earn this year? Use a 365-day year for interest computations, and round interest amounts to the nearest dollar. Mediterranean Services has a December 31 fiscal year-end Loaned $21,000 cash to Brandy Shields on a one-year, 10 % note. Performed service for Lawn Pro, receiving a 90-day, 9 % note for $5,000. Received a $4,000, six-month, 11 % note on account from Peabody Company Accrued interest revenue for the year. Oct Dec 6 16 31

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  1. 29 May, 06:01
    0
    578.22

    Explanation:

    Oct 1st $ 21,000 at 10%

    Dec 6th $ 5,000 at 9%

    Dec 16th $ 4,000 at 11%

    Principal x rate x time = interest

    being rate and time expressed in the same metric.

    21,000 x 0.10 x (31 + 30 + 31) / 365 = 529.3150685

    5,000 x 0.09 x (31-6) / 365 = 30.82191781

    4,000 x 0.11 x (31 - 16) / 365 = 18.08219178

    Total interest accrued: 578.2191781
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