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on January 1 2024, mary johnson load $180312 to jimmy jones. a zero-interest bearing note (face amount $240000) was exchanged solely for cash. no

on January 1 2024, mary johnson load $180312 to jimmy jones. a zero-interest bearing note (face amount $240000) was exchanged solely for cash. no

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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on january 1 2024, mary johnson load $180312 to jimmy jones. a zero-interest bearing note (face amount $240000) was exchanged solely for cash, no other rights or privileges were exchanged. the note is to be repaid on december 31 2026. the prevailing rate of interest for a loan of this type is 10%. the present value of $240000 at 10% for three years is $180316. what amount of interest income shouldms johnson recognize in 2024
Transcribed Image Text:on january 1 2024, mary johnson load $180312 to jimmy jones. a zero-interest bearing note (face amount $240000) was exchanged solely for cash, no other rights or privileges were exchanged. the note is to be repaid on december 31 2026. the prevailing rate of interest for a loan of this type is 10%. the present value of $240000 at 10% for three years is $180316. what amount of interest income shouldms johnson recognize in 2024
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