The Journal Entry for a Note Collected by the Bank

question 28

True/False

The journal entry for a note collected by the bank with interest requires a credit to Cash and a debit to both Notes Receivable and Interest Revenue.

---

Definitions:

Consolidated Revenues

The total revenue generated by a corporation and its subsidiaries, reported as one amount in the consolidated financial statements.

Common Stock

A type of equity security that represents ownership in a corporation, entitling holders to vote on corporate matters and typically to receive dividends.

Fair Value

The estimated market price of an asset or liability, based on current market conditions and arm’s length transactions, used for financial reporting purposes.