Question
A company receives interest on a $92000, 9%, 5-year note receivable each April 1. At December 31, 2020, the following adjusting entry was made to
A company receives interest on a $92000, 9%, 5-year note receivable each April 1. At December 31, 2020, the following adjusting entry was made to accrue interest receivable:
Interest Receivable 6210
Interest Revenue 6210
Assuming that the company does use reversing entries, what entry should be made on April 1, 2021 when the annual interest payment is received?
Cash 8280
Interest Revenue 8280
Cash 8280
Interest Receivable 6210
Interest Revenue 2070
Cash 6210
Interest Receivable 6210
Cash 2070
Interest Revenue 2070
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Income Tax Fundamentals 2013
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
31st Edition
1111972516, 978-1285586618, 1285586611, 978-1285613109, 978-1111972516
