Question
A company receives interest on a $90,000, 8%, 5-year note receivable each April 1. At December 31, 2020, the following adjusting entry was made to
A company receives interest on a $90,000, 8%, 5-year note receivable each April 1. At December 31, 2020, the following adjusting entry was made to accrue interest receivable:
Interest Receivable 5,400
Interest Revenue 5,400
Assuming that the company does not use reversing entries, what entry should be made on April 1, 2021 when the annual interest payment is received?
a. Cash 1,800
Interest Revenue 1,800
b. Cash 5,400
Interest Receivable 5,400
c. Cash 7,200
Interest Receivable 5,400
Interest Revenue 1,800
d. Cash 7,200
Interest Revenue 7,200
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CISA Certified Information Systems Auditor Study Guide Achieve CISA Certification With Practical Examples And Over 850 Exam Oriented Practice Questions
Authors: Hemang Doshi
2nd Edition
1803248157, 978-1803248158
