At the End of the First Quarter,which One of the Following

question 136

Multiple Choice

At the end of the first quarter,which one of the following entries will be made to record the interest earned by Palmer on the Berg note?

• A) DR Cash\(\quad\)2,500
• CR Interest income\(\quad\)2,500
• B) DR Accrued interest receivable\(\quad\)2,500
• CR Interest income\(\quad\)2,500
• C) DR Notes receivable-Berg\(\quad\)2,265
• CR Interest income\(\quad\)2,265
• D)There is no entry because the note is non-interest bearing.

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