On May 1, Year 1 Sturgis Company loaned $30,000 cash to Weir…
On May 1, Year 1 Sturgis Company loaned $30,000 cash to Weir Company. The one-year note carried a 6% rate of interest. The terms of the note required Weir to repay the principal and all interest on the maturity date. The amount of interest revenue on the income statement and the related amount of cash flow from operating activities on Sturgis’s December 31, Year 1 financial statements would be: