Summertime Equipment Corporation’s fiscal year ends on December 31. It has the following short-term notes receivable outstanding during 2000:

Amount Date Issued Life of Note Interest Rate

$3,000 February | 3 months 9%

5,000 September | 6 months 10%

2,000 December | 9 months 12%

Summertime collects all the interest on each note on the maturity date.

Required: (1) Compute the interest revenue (to the nearest month) that Summertime will report for these notes on its 2000 income statement.

(2) Compute the amount of interest receivable that Summertime will report for these notes on its 2000 ending balance sheet.

(3) Compute the interest revenue that Summertime will report for these notes on its 2001 income statement. TYK-1