Question
Manx Company's bank statement shows that a note receivable of $15,000 and interest of $1,050 were collected by the bank on behalf of the depositor.
Manx Company's bank statement shows that a note receivable of $15,000 and interest of $1,050 were collected by the bank on behalf of the depositor. The entry required on the company's books is
a.debit Cash; debit Interest Expense; credit Notes Receivable.
b.debit Cash; credit Notes Receivable.
c.debit Cash; credit Interest Income; credit Notes Receivable.
d.debit Notes Receivable; credit Cash; credit Interest Income.
e.debit Cash; debit Interest Income; credit Notes Receivable.
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Financial and Managerial Accounting the basis for business decisions
Authors: Jan Williams, Susan Haka, Mark Bettner, Joseph Carcello
18th edition
125969240X, 978-1259692406
