Multiple Choice
The company accrued interest revenue of $6,000 earned on an investment in an adjusting entry dated December 31,2014.A check for this amount was received on January 9,2015.How would the company record this transaction?
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
Q68: Discuss how accrual accounting enhances the usefulness
Q153: A post-closing trial balance is a list
Q191: On January 1 a company purchased a
Q195: If a company forgot to record depreciation
Q196: The following unadjusted and adjusted trial balances
Q197: Use the following table to indicate the
Q198: Based on the adjusted trial balance,prepare a
Q201: If a company failed to make the
Q205: The following information is available for the
Q224: Under the cash basis of accounting, no