Choo Ltd Invested $200 000 with a Bank for One $\quad$

question 7

Multiple Choice

Choo Ltd invested $200 000 with a bank for one year at 12 per cent on 1 September 2015 (interest payable at end of loan) .What is the adjusting journal entry at balance date,30 June 2016?

• A) Dr Accrued revenue $18 000 \(\quad \)\(\quad \)Cr Interest revenue $18 000
• B) Dr Accrued revenue $20 000 \(\quad \)\(\quad \)Cr Interest revenue $20 000
• C) Dr Accrued revenue $24 000 \(\quad \)\(\quad \)Cr Interest revenue $24 000
• D) Dr Unearned revenue $18 000 \(\quad \)\(\quad \)Cr Interest revenue $18 000

---

Definitions:

Mutual Defense Pact

An international agreement between countries to support each other in case of an attack by an external party, providing a collective security mechanism.

North Atlantic Treaty Organization

An intergovernmental military alliance formed in 1949 between North American and European countries to ensure mutual defense and security.

Military Aggression

actions by a state to use military force against another state or territory, often without a legitimate cause or provocation, leading to conflict or war.

Eisenhower Doctrine

A Cold War policy declared by U.S. President Dwight D. Eisenhower, stating American commitment to defend the Middle East against attack by any communist country.