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On May 1, 2021, Townsley borrowed $250,000 from Prime Bank by signing a three-year, 6% note payable. Interest is due each May 1. What adjusting
On May 1, 2021, Townsley borrowed $250,000 from Prime Bank by signing a three-year, 6% note payable. Interest is due each May 1. What adjusting entry, if any, should Prime Bank record on December 31, 2021?
Multiple Choice
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Debit Interest Receivable and credit Interest Revenue for $5,000.
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Debit Interest Receivable and credit Interest Revenue for $10,000.
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Debit Interest Receivable and credit Interest Revenue for $15,000.
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No adjusting entry is necessary.
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