White Resources Determines That It Has NOT Yet Recorded the 2017

question 63

Multiple Choice

White Resources determines that it has NOT yet recorded the 2017 accrual for Interest Revenue to be received in 2018.Assuming the amount to be recorded for 2017 is $2,000, the required adjustment at December 31, 2017 is

• A)debit Interest Receivable and credit Interest Revenue $2,000.
• B)debit Interest Revenue and credit Interest Receivable $2,000.
• C)debit Interest Payable and credit Interest Revenue $2,000.
• D)Silly question: no adjusting entry is required.

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Definitions:

Lease Payment

The payments made under a lease agreement for the use of an asset, typically paid at regular intervals.

Lease-Purchase Analysis

An evaluation process to determine whether leasing or purchasing assets is more cost-effective for a business or individual.

Financial Lease

A type of lease agreement wherein the lessee is responsible for all the costs associated with the asset's ownership and gets to record the asset on their balance sheet.