What Is the Adjusting Entry to Record Interest for Pristine

question 49

Multiple Choice

What is the adjusting entry to record interest for Pristine Company (the holder of the note) as of December 31 if they receive a $20,000, 90-day, 9% note on December 10th from Elegant Company (debtor) ? (Use a 360-day year. Do not round any intermediate calculations. Round your final answer to the nearest dollar.)

• A) Debit to Interest Income of $105; credit to Interest Receivable of $105.
• B) Debit to Interest Expense of $450; credit to Interest Payable of $450.
• C) Debit to Interest Payable of $450; credit to Interest Expense of $450.
• D) Debit to Interest Receivable of $105; credit to Interest Income of $105.

---

Definitions:

Dysfunction

Impairment or abnormal functioning within a system, such as in family dynamics or bodily organs.

Death Acceptance

The process of acknowledging and being at peace with the inevitability of death.

Terminal Illness

A medical condition that is expected to lead to death within a relatively short period, often characterized by a lack of effective treatment options.

Coping Skills

Strategies or mechanisms that individuals use to manage stress, deal with difficult situations, or adjust to life's challenges.