Ask Experts Questions for FREE Help !
Ask
    kriskingsbury's Avatar
    kriskingsbury Posts: 6, Reputation: 1
    New Member
     
    #1

    Jan 27, 2010, 09:36 AM
    Interest revenue
    Cresent Corporation's interest revenue for 2011 was $13,100. Accrued interest receivable on December 31, 2011, was $2,275 and $1,875 on December 31, 2010. The case received for interest during 2011 was

    Was it $10,825? Would'nt that be the cash that was the principle that the interest came from? 13,100 - 2,275? Then the interest receivable for 2010 doesn't matter?
    morgaine300's Avatar
    morgaine300 Posts: 6,561, Reputation: 276
    Uber Member
     
    #2

    Jan 27, 2010, 11:21 PM

    Yes, the interest receivable from 2010 matters. You started 2011 with that balance, added more to the receivable, then collected a certain amount, and ended up with 2011 balance.

    So you're not accounting for the fact that part of what was collected was what was due from 2010. You're letting yours debtors off the hook saying that what they owed from 2010 doesn't matter.

Not your question? Ask your question View similar questions

 

Question Tools Search this Question
Search this Question:

Advanced Search

Add your answer here.


Check out some similar questions!

Interest revenue [ 2 Answers ]

How do you calculate interest revenue?

Interest revenue [ 1 Answers ]

What is interest revenue and where on the income statement is it reported?:rolleyes:

Interest Revenue [ 2 Answers ]

Globo company accepted a $8000. Interest-bearing note receivable from a client on July 1. The note requires payment of 12% annual interest, and both the principal amount of the note and the interest will be due six months later, on Dec.31. If financial statements are prepared at the end of July,...


View more questions Search