E5-29A

(Apply GAAP for notes receivable) Record the following note receivable transactions in the journal of Arabian Realty. How much interest revenue did Arabian earn this year? Use a 365-day year for interest computations, and round interest amounts to the nearest dollar. Arabian Realty has an October 31 fiscal year-end.

Aug	1	Loaned $10,000 cash to Candace Smith on a one-year, 7% note.
Oct	6	Performed service for Putt Pro, receiving a 90-day, 6% note for $15,000.
Oct	16	Received a $2,000, six-month, 11% note on account from Vernon, Inc.
Oct	31	Accrued interest revenue for the year.