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On March 1, 2016, Steger Corporation invested in a $60,000 note receivable with a 1-year term and a 9% annual interest rate. Which of the
On March 1, 2016, Steger Corporation invested in a $60,000 note receivable with a 1-year term and a 9% annual interest rate. Which of the following is the correct adjusting journal entry to record the recognition of interest revenue on the note receivable at December 31, 2016?
| Debit | Credit | |
| Interest Receivable | 4,500 | |
| Interest Revenue | 4,500 |
| Debit | Credit | |
| Cash | 5,400 | |
| Interest Revenue | 5,400 |
| Debit | Credit | |
| Notes Receivable | 4,500 | |
| Interest Revenue | 4,500 |
| Debit | Credit | |
| Interest Receivable | 5,400 | |
| Interest Revenue | 5,400 |
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