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gayaneshka [121]
3 years ago
11

Interest earned on a note receivable at December 31 equals $225. What adjusting entry is required to accrue this interest?

Business
1 answer:
Nata [24]3 years ago
6 0

Answer:

Interest receivable A/c Dr $225

       To Interest revenue A/c $225

(Being the accrued interest is recorded)

Explanation:

The journal entry to record accrued interest is shown below:

On December 31

Interest receivable A/c Dr $225

       To Interest revenue A/c $225

(Being the accrued interest is recorded)

For recording this transaction we debited the interest receivable as it reflect in current asset and credited the interest revenue for $225 as it depict income

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