The Following General Journal Entry Is Made on June 1

question 41

Multiple Choice

The following general journal entry is made on June 1 in the books of Bean Bag.
Dr Cr
Bills receivable $63 550.68
Unearned interest $550.68
Accounts receivable $60 000.00
To record bills receivable $60 000 x 12% x 180 days/365 days.
The adjusting entry required for interest at balance day on 30 June is which of the following?

• A)Debit unearned interest $591.78; credit interest revenue $591.78
• B)Debit interest revenue $591.78; credit unearned interest $591.78
• C)Debit unearned interest $591.78; credit bills receivable $591.78
• D)Debit bank $591.78; credit interest revenue $591.78

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Definitions:

Proceeds

The amount of money received from a transaction, often referring to the sale of assets or property.

Documents Of Title

Legal documents that prove ownership of goods or property, such as bills of lading or warehouse receipts.

Consumer Goods

Products and commodities purchased by individuals for personal or household use.

Farm Products

Goods involved in farming operations, including crops, livestock, and products obtained from crops or animals (like milk or wool).