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In: Accounting

On November 1, 20X1, ABC Co. received a $30,000 note receivable from a client for services...

  1. On November 1, 20X1, ABC Co. received a $30,000 note receivable from a client for services rendered. The note receivable will be due on February 1, 20X2 with interest at 4% per year. ABC Co. adjusts its books monthly. What adjusting entry is needed on ABC Co.’s books on December 31, 20X1?

    a.

    Debit: Interest receivable…………………..100

                             Credit: Interest income..…….…….…....100
    b.

    Debit: Interest expense……………………..100

                             Credit: Interest payable………………….100
    c.

    Debit: Interest receivable…………………..200

                             Credit: Interest income.....……….……..200
    d.

    Debit: Cash………….. ……………….……100

                             Credit: Interest income…………………..100

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ekkarill92 answered 3 years ago
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