Randie Company Lends Luann Company $10,000 on April 1, Accepting $\begin{array}{lrr} \text { Note Receivable} &10,000\\ \text { Cash} &&10,000\\\end{array}$

question 131

Short Answer

Randie Company lends Luann Company $10,000 on April 1, accepting a four-month, 6% interest note. Randie Company prepares financial statements on April 30. What adjusting entry should be made before the financial statements can be prepared? a.
$\begin{array}{lrr} \text { Note Receivable} &10,000\\ \text { Cash} &&10,000\\\end{array}$

b.
$\begin{array}{lrr} \text {Interest Receivable } &50\\ \text {Interest Revenue } &&50\\\end{array}$

c.
$\begin{array}{lrr} \text { Cash} &50\\ \text { Interest Revenue } &&50\\\end{array}$

d.
$\begin{array}{lrr} \text {Interest Receivable } &200\\ \text { Interest Revenue } &&200\\\end{array}$

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Definitions:

Fit to Remain

Suitable or adequate to continue in status, position, or condition, implying no need for significant alteration or replacement.

Rear Caliper Piston

A specific type of caliper piston located at the rear brakes, playing a vital role in the vehicle's stopping power by applying pressure to the brake pads.

Front Caliper Piston

A component of disc brake systems, located in the brake caliper, that pushes against the brake pads to create friction with the brake rotors and slow the vehicle.

Rotor Thickness

A measurement of the width of the rotor, a key component in a disc brake system, which is crucial for effective braking and safety.