Rose Corp Has a Note Receivable from Jewel Co for $80,000

question 160

Multiple Choice

Rose Corp. has a note receivable from Jewel Co for $80,000. The note matures in 5 years and bears interest of 6%. Rose is preparing financial statements for the month of June. Rose should make an adjusting entry:

• A) Debiting Interest Revenue for $400 and crediting Interest Receivable for $400.
• B) Debiting Interest Receivable for $400 and crediting Interest Revenue for $400.
• C) Debiting Interest Revenue for $4,800 and crediting Interest Receivable for $4,800.
• D) Crediting Interest Payable for $400 and debiting Interest Expense for $400.

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Definitions:

Caudate Nucleus

A brain structure within the basal ganglia, involved in various functions including motor control and learning.

Amygdala

A section of the brain's limbic system that is critical for emotion processing, memory, and decision-making.

Substantia Nigra

A darker-colored region in the midbrain associated with motor control and reward, and its degeneration is a hallmark of Parkinson's disease.

Caudate Putamen

A brain structure in the basal ganglia that plays significant roles in movement control, learning, and habit formation.