Principle Place Determines That It Has NOT Yet Recorded the 2020

question 42

Multiple Choice

Principle Place determines that it has NOT yet recorded the 2020 accrual for interest revenue to be received in 2021. Assuming the amount to be recorded for 2020 is $ 6,000, the required adjustment at December 31, 2020, is

• A) debit Interest Receivable and credit Interest Revenue $ 6,000.
• B) debit Interest Revenue and credit Interest Receivable $ 6,000.
• C) debit Interest Payable and credit Interest Revenue $ 6,000.
• D) No adjusting entry is required.

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Definitions:

Ethmoid

A lightweight, spongy bone located at the root of the nose between the eyes, forming part of the cranial floor and part of the nasal cavity and eye orbits.

Sphenoidal

Pertaining to the sphenoid bone, a butterfly-shaped bone at the base of the skull that plays a crucial role in the cranial structure and houses the pituitary gland.

Mastoid

A prominent bone located behind the human ear, part of the temporal bone, containing air cells that drain the middle ear.

Lifelike Wax Statues

Hyper-realistic sculptures made from wax, designed to represent famous individuals or historical figures with striking accuracy.