Multiple Choice
The company has earned (but not recorded) $6,000 of interest relating to an investment for the year ended December 31,2014.A check for this amount will be received on January 9,2015.How would the company record the related adjusting entry dated December 31,2014?
A) Debit Cash for $6,000 and credit Interest Revenue for $6,000.
B) Debit Interest Receivable for $6,000 and credit Interest Revenue for $6,000.
C) Debit Interest Expense for $6,000 and credit Interest Revenue for $6,000.
D) Debit Cash for $6,000 and credit Interest Receivable for $6,000.
E) Debit Interest Revenue for $6,000 and credit Income Summary for $6,000.
Correct Answer:
Verified
Correct Answer:
Verified
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