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Alex787 [66]
3 years ago
12

Bank of College Park loaned $9,000 to a customer on May 1, 2018, accepting a 9-month, 8% note. The bank recorded the transaction

properly on May 1. As of year-end on December 31, 2018, what adjusting entry will the bank make with respect to this note? Group of answer choices Unearned interest 480 Interest revenue 480 Interest receivable 720 Interest revenue 720 Interest Receivable 540 Interest revenue 540 Interest receivable 480 Interest revenue 480
Business
1 answer:
VMariaS [17]3 years ago
6 0

Answer:

Interest receivable 480 Interest revenue 480

Explanation:

The adjusting entry is shown below:

Interest receivable Dr 480  ($9,000 × 8% × 8 months ÷ 12 months)

        To Interest revenue 480

(Being the interest receivable is recorded)

The interest receivable is debited as it increased the assets and credited the interest revenue as it also increased the revenue

The eight months are considered from May 1,2018 to December 31,2018

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"Trial Balance"

The full sentence will be as follow:
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Trial Balance means a statement with all the debits and credits in an account book along with the mention of any difference showing a mistake.</span>

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2 years ago
An increase in the real interest rate results in which of the​ following? A. an increase in the demand for loanable funds B. a d
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Answer:

B. a decrease in the demand for loanable funds.

Explanation:

An increase in the real interest rate will result in a decrease for the loanable funds.

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The higher the rate of interest the lesser the demand for loans is there. Interest is charged on loans because it is a facility given.

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Which of the following would best describe what would happen to the time value at the same nominal annual rate of a cash flow as
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