The Company Accrued Interest Revenue of $6,000 Earned on an Investment

question 200

Multiple Choice

The company accrued interest revenue of $6,000 earned on an investment in an adjusting entry dated December 31,2014.A check for this amount was received on January 9,2015.How would the company record this transaction?

• A)Debit Cash for $6,000 and credit Interest Revenue for $6,000.
• B)Debit Interest Receivable for $6,000 and credit Interest Revenue for $6,000.
• C)Debit Interest Expense for $6,000 and credit Interest Revenue for $6,000.
• D)Debit Cash for $6,000 and credit Interest Receivable for $6,000.
• E)Debit Interest Revenue for $6,000 and credit Income Summary for $6,000.

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Definitions:

Total Janitorial Department Cost

The complete expenses associated with maintaining and cleaning a facility, attributed to the janitorial department.

Net Realizable Value

The estimated selling price in the ordinary course of business minus any costs of completion, transportation, and selling.

Split-Off Point

The stage in a production process where multiple products become separately identifiable, and decisions regarding further processing or disposal can be made.

Additional Processing Costs

Costs incurred when more processes are applied to a product after its initial manufacturing phase, often to enhance its value.