Question
Young Company lends Dobson industries $30,000 on August 1, 2010, accepting a 9-month, 10% interest note. Interest has been accrued up to December 31, 2010.
Young Company lends Dobson industries $30,000 on August 1, 2010, accepting a 9-month, 10% interest note. Interest has been accrued up to December 31, 2010. What journal entry should Young Company record when Dobson industries paid off the note plus interest?
| Debit cash for 30,000 | ||
| Credit notes receivable for 30,000 | ||
| Debit interest revenue for 2,700 | ||
| Debit interest receivable for 900 |
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Auditing An International Approach
Authors: Wally J. Smieliauskas, Kathryn Bewley
7th edition
1259259870, 1259087468, 70968292, 978-1259087462
