Solved by verified expert :Cypress Oil Company’s December 31, 2013, balance sheet listed 5,000 of notes receivable and $16,000 of interest receivable included in current assets. The following notes make up the notes receivable balance:Note 1 Dated 8/31/2013, principal of $300,000 and interest at 10% due on 2/28/2014.Note 2 Dated 6/30/2013, principal of $150,000 and interest due 3/31/2014.Note 3 $200,000 face value noninterest-bearing note dated 9/30/2013, due 3/31/2014. Note was issued in exchange for merchandise. The company records adjusting entries only at year-end. There were no other notes receivable outstanding during 2013.Required:1. Determine the rate used to discount the noninterest-bearing note. Discount rate % 2. Determine the explicit interest rate on Note 2. (Do not round intermediate calculations.) Interest rate % 3. What is the amount of interest revenue that appears in the company’s 2013 income statement related to these notes? (Do not round intermediate calculations.) Interest revenue $
