January 1: Reversing Entry: Interest Revenue 5 Interest Receivable March 1: Receipt of payment - Normal Entry Cash 5 1015 Assignment: Notes Receivable 1000 Interest Revenue 15 Problem 1: During the first year of operations, a calendar year company received $14,400 in cash for rent on a portion of its building. Analysis indicates that of this amount $4,800 applies to next year. a) Assuming the $14,400 was recorded initially in an income statement account (revenue), record all necessary entries. b) Assuming the $14,400 was recorded initially in a balance sheet account (liability), record all necessary entries.