A Promissory Note Is Executed in June

question 102

Multiple Choice

A promissory note is executed in June.When the note is paid the following January,the payee's entry includes (assuming a calendar-year accounting period and no reversing entries) a

• A)debit to Interest Income.
• B)credit to Cash.
• C)credit to Interest Receivable.
• D)debit to Notes Receivable.

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Definitions:

Property

Refers to legally owned items or assets, including real estate, personal items, and intellectual property.

Compensation

Payment or benefit given to someone, often as a reparation for loss, injury, or suffering.

Private Property

Property owned by individuals or corporations rather than by the government or the public.

Individual

A single human being as distinct from a group, class, or family.