QUESTION 28 Starr Corporation loaned $600,000 to another corporation on December 1, 2020 and received a...
QUESTION 28 Starr Corporation loaned $600,000 to another corporation on December 1, 2020 and received a 3-month, 8% interest-bearing note with a face value of $600,000. What adjusting entry should Starr make on December 31, 2020? Debit Interest Receivable and credit Interest Revenue, $12,000. Debit Cash and credit Interest Revenue, $4,000. Debit Interest Receivable and credit Interest Revenue, $4,000. Debit Cash and credit Interest Receivable, $12,000.
Homework Answers
| Journal entry is as follows. | |||
| Date | Account Title | Debit | Credit |
| Interest receivables ($600000*8%*1/12) | $ 4,000 | ||
| Interest revenue | $ 4,000 | ||
| (to record accrued interest on note ) | |||
| Correct Option : THIRD | |||
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QUESTION 28 Starr Corporation loaned $600,000 to another
corporation on December 1, 2020 and received a...
Question 4 of 5 -/1 View Policies Current Attempt in Progress Pharoah Corporation loaned $550000 to...
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On October 31 of the current year, a contract was signed and achegue received for services to be performed by October 31 of the following year. The neared Service Revenue account was credited for $4,500. Assuming services were performed evenly during the remainder of the sea the adjusting entry on December 31 will involve a: A) credit to Unearned Service Revenue 5800 B) credit to Service Revenue for $4,000 C) credit to Service Revenue 5800 D) debit to Unearned Service...
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