On September 1, Kennedy Company loaned $128,000, at 12% annual interest, to a customer. Interest and principal will be collected when the loan matures one year from the issue date. Assuming adjustments are only made at year-end, what is the adjusting entry for accruing interest that Kennedy would need to make on December 31, the calendar year-end?
a. Debit Interest Receivable, $15,360; credit Cash, $15,360
b. Debit Interest Expense, $15,360; credit Interest Payable, $15,360
c. Debit Interest Receivable, 5,120; credit Interest Revenue, $5,120.
d. Debit Interest Expense, $5,120; credit Interest Payable, $5,120
e. Debit Cash, $5,120; credit Interest Revenue, $5,120.
Answers (1)
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “On September 1, Kennedy Company loaned $128,000, at 12% annual interest, to a customer. Interest and principal will be collected when the ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers
You Might be Interested in
An employee receives an hourly rate of $25, with time and a half for all hours worked in excess of 40 during a week. Payroll data for the current week are as follows: hours worked, 45; federal income tax withheld, $350; social security tax rate, 6.
Answers (1)
Cash Received from Customers-Direct Method Sales reported on the income statement were $112,000. The accounts receivable balance decreased $10,500 over the year. Determine the amount of cash received from customers.
Answers (1)
the return to schooling for society is higher than the return to schooling for the individual if a. the concept of diminishing returns applies to education. b. the concept of constant returns to scale applies to education. c.
Answers (1)
As marketing vice president of Health Care Services, Inc., you must test the hypothesis that increasing the number of salespeople assigned to a territory will increase sales of health care services in the territory.
Answers (1)
Which is the best way to manage a credit card to ensure your financial health? A. Making the minimum monthly payment B. Keeping your balance as close as possible to the maximum allowed C. Paying the bill in full each month D.
Answers (1)
New Questions in Business
Which accounting assumption or principle is being violated if a company reports its corporate headquarter building at its fair value on the balance sheet? Monetary unit Full disclosure Historical cost Going concern
Answers (1)
A consumer is currently spending all of her available income on two goods: music CDs and DVDs. At her current consumption bundle, she is spending twice as much on CDs as she is on DVDs.
Answers (1)
at the end of the year, the walt disney company has a profit of $920 million. this profit belongs to which of the following group?
Answers (1)
In a large open economy, what is one of the reasons the demand curve for loanable funds is downward sloping
Answers (1)
During its first and second years of operations, Rogers Company, a corporation using a periodic inventory system, made undiscovered errors in taking its year-end inventories that overstated year 1 ending inventory by $80,000 and overstated year 2
Answers (1)