Interest receivable on loan


Problem:

On June 1, 2004, Vent Corp. loaned Irvin $400,000 on a 12% note, payable in five annual installments of $80,000 beginning January 2, 2005. In connection with this loan, Irvin was required to deposit $4,000 in a zero-interest-bearing escrow account. The amount held in escrow is to be returned to Irvin after all principal and interest payments have been made. Interest on the note is payable on the first day of each month beginning July 1, 2004. Irvin made timely payments through November 1, 2004. On January 2, 2005, Vent received payment of the first principal installment plus all interest due. At December 31, 2004, Vent's interest receivable on the loan to Irvin should be..??

Solution Preview :

Prepared by a verified Expert
Finance Basics: Interest receivable on loan
Reference No:- TGS02039572

Now Priced at $20 (50% Discount)

Recommended (90%)

Rated (4.3/5)