Deere Company Holds a $14,400 Note Receivable Dated July 1,2019,with

question 155

Multiple Choice

Deere Company holds a $14,400 note receivable dated July 1,2019,with 10% interest.What adjusting entry is needed on December 31,2019?

• A)No entry is needed.
• B)Debit Interest Receivable for $144 and credit Interest Revenue for $144
• C)Debit Interest Receivable for $720 and credit Interest Revenue for $720
• D)Debit Interest Receivable for $1,440 and credit Interest Revenue for $1,440

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Definitions:

Money Market Accounts

Savings accounts that typically offer higher interest rates in exchange for larger deposit balances, with limited transaction privileges.

Cash

Cash represents money in the physical form of currency, such as banknotes and coins, that is used to conduct transactions.

Financing Activity

Transactions between a business and its financiers, such as issuing debt or equity.

Cash Inflow

Any increase in cash is called a cash inflow or a source of cash. When listing the total for a major section of the statement of cash flows, if cash is increased, the figure is often described as “cash provided” by operating activities (or by investing activities or financing activities).