Penny Resources Determines That It Has Not Yet Recorded the Accrual

question 1

Multiple Choice

Penny Resources determines that it has not yet recorded the accrual for 2010 interest revenue to be received in 2011.Assuming the amount to be recorded for 2010 is $8,000, the required adjustment on December 31, 2010 is

• A)debit interest receivable and credit interest revenue $8,000.
• B)debit interest revenue and credit interest receivable $8,000.
• C)debit interest payable and credit interest revenue $8,000.
• D)no entry required.

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Definitions:

Stratosphere

The stratosphere is the second major layer of Earth's atmosphere, located above the troposphere and characterized by a temperature inversion with altitude.

Hydrocarbons

Organic compounds consisting entirely of hydrogen and carbon, found in fossil fuels and used as a primary energy source and raw material in chemical manufacturing.

Suspended Particles

Tiny solid or liquid particles that are suspended in air or water, which can be harmful to human health and the environment when inhaled or ingested.

Pollutants

Substances introduced into the environment that cause harm or discomfort to the ecosystem or living organisms, including chemicals, waste materials, and noise.