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A Company Receives Interest on a $70,000, 8%, 5-Year Note

Question 26

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A company receives interest on a $70,000, 8%, 5-year note receivable each April 1. At December 31, 2014, the following adjusting entry was made to accrue interest receivable:

Interest Receivable 4,200
Interest Revenue 4,200
Assuming that the company does not use reversing entries, what entry should be made on April 1, 2015 when the annual interest payment is received? A company receives interest on a $70,000, 8%, 5-year note receivable each April 1. At December 31, 2014, the following adjusting entry was made to accrue interest receivable: Interest Receivable 4,200 Interest Revenue 4,200 Assuming that the company does not use reversing entries, what entry should be made on April 1, 2015 when the annual interest payment is received?

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