Answer:
$2,569
Explanation:
Given that,
Amount of Note Payable = $92,400
Rate of interest = 11%
Number of days in a year = 360
Number of days for Note Payable = 120
Total Interest on Notes Payable for 120 days:
= Amount of Note Payable × Interest rate × Time period
= $92,400 × 11% × (120 ÷ 360)
= $3,388
Days Till 30 June = 29 days
Days after 30 June = 120 days - Days Till 30 June
= 120 days - 29 days
= 91 days
Interest after 30 June:
= Total Interest on Notes Payable for 120 days × (91 ÷ 120)
= $3,388 × 0.7583
= $2,569.23
Therefore, the amount of interest revenue (rounded) recognized by Garcia in the following year is $2,569.
