Question
30 Loaned an officer of the company $21,000 and received a note requiring principal and interest at 7% to be paid on March 30, 2022.
| 30 | Loaned an officer of the company $21,000 and received a note requiring principal and interest at 7% to be paid on March 30, 2022. |
The journal entry is interest receivable $245 and Interest revenue $245. $21000*0.07*(2/12). My question is why do I have to multiply by 2 months/12?
Why do I not calculate 9 months by starting April? Please explain me!
Thank you!
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Accounting Principles
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso
9th Edition
978-0470317549, 9780470387085, 047031754X, 470387084, 978-0470533475
