Question
On November 1, 20X1, ABC Co. received a $30,000 note receivable from a client for services rendered. The note receivable will be due on February
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On November 1, 20X1, ABC Co. received a $30,000 note receivable from a client for services rendered. The note receivable will be due on February 1, 20X2 with interest at 4% per year. ABC Co. adjusts its books monthly. What adjusting entry is needed on ABC Co.s books on December 31, 20X1?
a. Debit: Interest receivable..100
Credit: Interest income........100
b. Debit: Interest expense..100
Credit: Interest payable.100
c. Debit: Interest receivable..200
Credit: Interest income........200
d. Debit: Cash.. .100
Credit: Interest income..100
On November 1, 20X1, ABC Co. received a $30,000 note receivable from a client for services rendered. The note receivable will be due on February 1, 20X2 with interest at 4% per year. ABC Co. adjusts its books monthly. What adjusting entry is needed on ABC Co.s books on December 31, 20X1?
| a. | Debit: Interest receivable..100 Credit: Interest income........100
| |
| b. | Debit: Interest expense..100 Credit: Interest payable.100
| |
| c. | Debit: Interest receivable..200 Credit: Interest income........200
| |
| d. | Debit: Cash.. .100 Credit: Interest income..100
|
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Company Audit In A Budget Internal Audit For Financial Managers
Authors: Pramod Kesav N
1st Edition
B09QXF42M2
