XYZ Company loaned ABC Company $30,000 on 11/1/15 and had ABC sign a 6 month, 10% note with no interest paid until maturity. Assuming NO adjusting entries were made during the year, the entry on XYZs books for 12/31 would be:

XYZ Company loaned ABC Company $30,000 on 11/1/15 and had ABC sign a 6 month, 10% note with no interest paid until maturity. Assuming NO adjusting entries were made during the year, the entry on XYZ's books for 12/31 would be: Debit: Interest Expense $500 and Credit: Interest Payable $500 Debit: Interest receivable $500 and Credit: Interest Income $500 Debit: Interest Expense $3,000 and Credit: Interest Payable $3,000 Debit: Interest receivable $1,500 and Credit: Interest Income $1,500