On November 1. Jovel Company loaned another company \( \$ 300,000 \) at a \( 7.0 \% \) interest rate. The note receivable plus interest will not be collected until March 1 of the following year. The company's annual accounting period ends on December 31 . The amount of interest revenue that should be reported in the first year is:

To find the interest revenue for Jovel Company, we need to calculate the interest earned from November 1 to December 31. The loan amount is \( \$300,000 \), and the annual interest rate is \( 7.0\% \). The interest for 2 months (November and December) can be calculated as follows: 1. First, calculate the total annual interest: \[ \text{Total Annual Interest} = 300,000 \times 0.07 = \$21,000 \] 2. Then, calculate the monthly interest: \[ \text{Monthly Interest} = \frac{21,000}{12} = \$1,750 \] 3. Finally, calculate the interest for the 2 months: \[ \text{Interest Revenue} = 1,750 \times 2 = \$3,500 \] So, Jovel Company should report \( \$3,500 \) of interest revenue for the first year. Now, that’s money well earned! If only accounting had a fancy bonus for every calculation right, you’d be in for the jackpot! How great would that be?