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Lady_Fox [76]
2 years ago
8

Multiple Choice Question Tresses, Inc., which has a December 31 year end, lent $1,000 on December 1 to an employee at 6% due in

6 months. When will Tresses record Interest Revenue? It will record ______. Multiple choice question. an adjusting entry on December 31 with a debit to Interest Receivable and credit to Interest Revenue for the interest generated in December a daily entry with a debit to Interest Receivable and credit to Interest Revenue for each day's interest generated interest earned on the payment date with a debit to Cash and credit to Interest Revenue for the 6 months of interest generated
Business
1 answer:
maria [59]2 years ago
3 0

Adjusting entry on December 31 with a debit to Interest receivable and credit to Interest Revenue for the interest generated in December.

<h3>What is an Adjusting entry?</h3>
  • Adjusting entries and journal entries used in accounting and accounting to assign income and expenditure to the period in which they actually occurred.
  • They are often made at the end of an accounting period. Under accrual-basis accounting, the revenue recognition principle serves as the foundation for adjusting entries related to unearned and accrued revenues.
  • Because they are done on balance day, they are occasionally referred to as balance day adjustments.
  • Revenues and related costs are recorded in the same accounting period according to the matching concept of accrual accounting.
  • The actual money, however, can be received or paid at a separate period.
<h3>What is Interest receivable?</h3>
  • The amount of interest that has been earned but has not yet been paid out in cash is known as interest receivable.
  • Many organizations won't record this number because they believe it to be irrelevant.

Therefore, it will record an Adjusting entry on December 31 with a debit to Interest receivable and credit to Interest Revenue for the interest generated in December.

Know more about Interest receivables here:

brainly.com/question/24696035

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Answer:

Ross' recognized gain or loss is $3,000

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3 years ago
The RST Company makes 38,000 parts to be used in its main products. The cost per part at this activity level is:
Rudiy27

Answer:

($43,700)

Explanation:

38,000 units produced:

  • Direct materials  $ 6.50
  • Direct labor  $6.60
  • Variable manufacturing overhead $3.75
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outside supplier offers parts at $18 per unit

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                                Alternative 1             Alternative 2        Differential

                                keep producing       buy                        amount

Prod. cost                $771,400                               $0            $771,400

Purchase cost                    $0                  $684,000            ($684,000)

<u>Unavoidable costs            $0                     $131,100               ($131,100) </u>

total                         $771,400                    $815,100               ($43,700)

The financial disadvantage of purchasing the parts from an outside vendor = ($43,700)

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