The Journal Entry to Record Accrued Interest on a Note

question 78

Multiple Choice

The journal entry to record accrued interest on a note receivable at year end is:

• A)debit Interest Receivable and credit Interest Revenue.
• B)debit Note Receivable and credit Interest Revenue.
• C)debit Interest Receivable and credit Note Receivable.
• D)debit Cash and credit Interest Receivable.

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Definitions:

Macula Lutea

A small, yellowish central area of the retina that is rich in cones and where visual acuity is highest.

Fovea Centralis

A small depression in the retina where visual acuity is highest.

Optic Disk

The spot in the eye where the optic nerve meets the retina, sometimes referred to as the blind spot.

Retina

A thin layer of tissue located at the back of the eye, containing cells sensitive to light that trigger nerve impulses that pass via the optic nerve to the brain, where a visual image is formed.