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

Question 66

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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 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 use reversing entries, what entry should be made on April 1, 2015 when the annual interest payment is received?

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