The Last Bank Lends Money to a Customer on a Six

question 120

Multiple Choice

The Last Bank lends money to a customer on a six month note. The bank accrues interest on the note at the end of the year. The journal entry would include:

• A)a debit to Cash and a credit to Interest Revenue.
• B)a debit to Cash and a credit to Interest Payable.
• C)a debit to Interest Receivable and a credit to Interest revenue.
• D)a debit to Interest Revenue and a credit to Interest Receivable.

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Definitions:

Decode Messages

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