Cuisine Company Received a 6-Month,6% Note for $10,000 from Its $\begin{array}{cc}&&&\underline { 2016 }&& \underline { 2017 } \\\end{array}$

question 12

Short Answer

Cuisine Company received a 6-month,6% note for $10,000 from its president on October 1,2016.The note is due on March 31,2017.If Cuisine's accounting period ends on December 31,how much interest revenue should Cuisine recognize during 2016 and 2017?
$\begin{array}{cc}&&&\underline { 2016 }&& \underline { 2017 } \\\end{array}$

a.
$\begin{array}{cc}&&&\$450&&\$150\end{array}$

b.
$\begin{array}{cc}&&&\$600&&\$0\end{array}$

c.
$\begin{array}{cc}&&&\$300&&\$300\end{array}$

d.
$\begin{array}{cc} &&&\$150&&\$150\end{array}$

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Definitions:

Normal Distribution

A bell-shaped frequency distribution curve, where most occurrences take place in the middle of the range and fewer on the extremes, characterized by mean and standard deviation.

Population Proportion

The ratio of members in a subset of the population who have a particular attribute to the total number of members in the population.

Point Estimate

A solitary figure or metric that represents the most probable estimate or optimal prediction for a population parameter, derived from sample data.

Margin of Error

The maximum expected difference between the true population parameter and a sample estimate of that parameter.