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Readme [11.4K]
3 years ago
12

On September 15, 2021, Oliver's Mortuary received a $3,600, nine-month note bearing interest at an annual rate of 14% from the e

state of Jay Hendrix for services rendered. Oliver's has a December 31 year-end. What adjusting entry will the company record on December 31, 2021
Business
1 answer:
pentagon [3]3 years ago
8 0

Answer:

The Journal entry is as follows:

On December 31, 2021

Interest Receivable A/c Dr. $147

          To Interest revenue A/c      $147

(To record the interest receivable)

Working notes:

Interest Receivable:

= Amount received × Annual rate of interest × Time period

= $3,600 × (14% ÷ 12) × 3.5

= $3,600 × 0.01167 × 3.5

= $147

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1 year ago
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2 years ago
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3 years ago
Glumhoff​'s Packaging Department had the following information at July 31. All direct materials are added at the end of the conv
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