Assume That the $2,000,90-Day,8 Percent Note Was Received on August

question 58

Multiple Choice

Assume that the $2,000,90-day,8 percent note was received on August 31 and that the fiscal year ended on September 30.The adjusting entry that would be made to record the interest receivable is (amounts rounded to nearest dollar) :

• A)Interest Receivable 13 Interest Income 13
• B)Notes Receivable 13 Interest Income 13
• C)Accounts Receivable 39 Cash 39
• D)Interest Income 39 Accounts Receivable 39

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Definitions:

Balance Sheet Columns

Sections within a balance sheet representing assets, liabilities, and shareholders' equity at a specific point in time.

Capital Accounts

Financial accounts in a company's balance sheet that represent the owners' equity or the shareholders' stake in the company.

Statement Of Owner's Equity

A financial statement showing the changes in the equity of a company or entity over a fiscal period, including investments, drawings, and the period's earnings or losses.

Income Statement Debit

This is not a typical term in accounting as income statements are structured around revenues and expenses rather than debits and credits.