For Each of the Following Notes Receivables Held by Winter

question 29

Essay

For each of the following notes receivables held by Winter Company, determine the interest revenue to be reported on the income statements. Round answers to nearest whole dollar. $$\begin{array} { | l | c | c | c | c | c | } \hline{ \text { Date } } & \text { Face } & \text { Rate } & \text { Term } & \begin{array} { c } \text { Year 1 } \\\text { Interest } \\\text { Revenue }\end{array} & \begin{array} { c } \text { Year 2 } \\\text { Interest } \\\text { Revenue }\end{array} \\\hline \text { Aug. 8, Year 1 } & \$ 15,000 & 7 \% & 180 \text { days } & & \\\hline \text { Oct. 7, Year 1 } & 22,000 & 8 & 60 \text { days } & & \\\hline \text { Jan. 6, Year 2 } & 30,000 & 8 & 90 \text { days } & & \\\hline \text { Nov. 12, Year 1 } & 28,000 & 9 & 60 \text { days } & & \\\hline\end{array}$$

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Definitions:

Maximum Profit

The highest possible financial gain achievable by a firm from its operations, after all costs have been subtracted from total revenue.

Output

The quantity of goods or services produced within a given time frame by a firm, industry, or country.

Long-Run Supply

The time period in which all factors of production and costs are variable, allowing firms to fully adjust to market conditions.

Curve

In economics, this refers to a graphical representation depicting the relationship between two variables, such as supply and demand.