Chapter 5 290T

On October 1 of Year 1 , Della Company made a cash loan to another company. The interest rate on the loan is 13%. No cash payments will be collected on the loan until September 30 of Year 2 . Which debit or credit is correctly included in the ADIUSTING journal entry necessary on Della's books (the LENDER) on December 31 of Year 1 with respect to this loan? CREDIT to interest Expense DEBIT to Interest Expense CREDIT to Cash DEBIT to interest Revenue CREDIT to Interest Revenue On September 1 of Year 1, Dee Company received cash for rent in advance. This rental receipt covers the period from September 1 of Year 1 to August 31 of Year 2 . This receipt of cash was recorded as a liability, Unearned Rent. Which debit or credit is correctly included in the ADIUSTING journal entry necessary on December 31 of Year 1 with respect to this rent received in advance? CREDIT to Rent Revenue CREDIT to Cash CREDIT to Rent Expense DEBIT to Rent Expense DEBIT to Rent Revenue