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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Accounting Principles
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso
13th edition
978-1-119-4110, 1119411483, 9781119411017, 978-1119411482
