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Good Food Company lent $300,000 cash on September 30 and received a one-year 5%, interest-bearing note receivable. The required adjusting entry on December 31 would
Good Food Company lent $300,000 cash on September 30 and received a one-year 5%, interest-bearing note receivable. The required adjusting entry on December 31 would be
Interest Receivable +$2,000 Interest Revenue +$2,000 | ||
Interest Receivable +$3,750 Interest Revenue +$3,750 | ||
Cash +$111,250 Notes Receivable -$100,000 Interest Receivable -$11,250 | ||
Interest Revenue +$2,500 Interest Receivable +$2,500 |
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