On May 1, 2011 (Maturity Date), the Note Is Collected

question 60

Multiple Choice

On May 1, 2011 (maturity date) , the note is collected in full by Salem Corporation. Assuming a fiscal year-end of December 31, Salem recognizes which of the following in its income statement for 2011 with regard to this note?

• A) $927,000 sales revenue.
• B) $27,000 interest revenue.
• C) $18,000 interest revenue.
• D) $9,000 interest revenue.