Answered step by step
Verified Expert Solution
Question
1 Approved Answer
24. Claire Company uses accrual accounting and issues financial statements every December 31. On July 1, 2021, Claire Company lends Alex industries $40,000 and
24. Claire Company uses accrual accounting and issues financial statements every December 31. On July 1, 2021, Claire Company lends Alex industries $40,000 and accepts a 9-month, 9% interest note. Claire Company's required adjusting entry on December 31, 2021, consists of A) an $1,800 debit to Interest Receivable and an $1,800 credit to Interest Revenue. B) a $3,600 debit to Interest Receivable and a $3,600 credit to Interest Revenue. c) a $2,400 debit to Interest Receivable and a $2,400 credit to Interest Revenue. D) an $1,800 debit to Notes Receivable and an $1,800 credit to Interest Revenue.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started