Question
Perry Corporation loaned $78,000 to another corporation on December 1, 2010 and received a three-month, 9 percent interest-bearing note with a face value of $78,000.
Perry Corporation loaned $78,000 to another corporation on December 1, 2010 and received a three-month, 9 percent interest-bearing note with a face value of $78,000. What adjusting entry should the company make on December 31, 2010?
a) Debit Interest Receivable and credit Interest Revenue, $585.
b) Debit Interest Receivable and credit Interest Revenue, $900.
c) Debit Cash and credit Interest Receivable, $1,755.
d) Debit Cash and credit Interest Revenue, $585.
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Financial Accounting
Authors: John Hoggett, Lew Edwards, John Medlin, Keryn Chalmers, Jodie Maxfield, Andreas Hellmann, Claire Beattie
9th Edition
1118608208, 978-1118608203
