Question: On April 15, 2012, Sampson Consulting provides services to a customer for $100,000. To pay for the services, the customer signs a three-year, 9% note. The face amount and all interest are due at the end of the third year. [Because the note is accepted during the middle of the month, Sampson plans to recognize one-half month of interest revenue in April 2012, and one-half month of interest revenue in April 2015.]
Required: 1. Record the acceptance of the note on April 15, 2012.
2. Record the adjustment for interest revenue on December 31, 2012, 2013, and 2014.
3. Record the cash collection on April 15, 2015.