The Journal Entry Pierce Will Record on June 30 Will

question 132

Multiple Choice

The journal entry Pierce will record on June 30 will include a

• A) credit to Interest Revenue for $2,400
• B) debit to Cash for $3,600
• C) credit to Cash for $2,400
• D) credit to Interest Receivable for $1,200

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Definitions:

Issuing Shares

The process by which a company distributes its shares to investors, thereby raising capital.

Decrease In Cash

A reduction in the amount of cash a company holds, which may result from payments for expenses, investments, or debts.

Statement Of Income

A financial document that reports a company's financial performance over a specific period, showing revenues, expenses, and net income.

Statement Of Financial Position

Another term for a balance sheet, showing a company's assets, liabilities, and equity at a specific point in time.