Asked by Maurice Edwards on May 08, 2024
Verified
Lemming makes an $18,750,120-day,8% cash loan to Notions Co.on November 1.Lemming's end-of-period adjusting entry on December 31 should be:
A) Debit Cash for $250; credit Notes Receivable $250.
B) Debit Interest Revenue $500; credit Notes Receivable $500.
C) Debit Interest Receivable $250; credit Interest Revenue $250.
D) Debit Interest Receivable $500; credit Interest Revenue $500.
E) Debit Notes Receivable $500; credit Interest Revenue $500.
Cash Loan
A financial agreement where a borrower receives a specific amount of cash from a lender and commits to repaying it over time, along with interest.
End-of-Period Adjusting Entry
Journal entries made at the end of an accounting period to update the accounts and ensure revenues and expenses are recorded in the appropriate period.
Interest Revenue
Income earned from lending investments or extending credit, typically expressed in monetary terms.
- Determine the ultimate value of notes receivable and log the earnings from interest.
Verified Answer
Learning Objectives
- Determine the ultimate value of notes receivable and log the earnings from interest.
Related questions
Jax Recording Studio Purchased $7,800 in Electronic Components from Music ...
Duerr Company Makes a $60,000,60-Day,12% Cash Loan to Ryan Co \(\bold{\text{(Use ...
Giorgio Italian Market Bought $4,000 Worth of Merchandise from Food ...
The Total Amount of the Note and Interest Due on ...
Jasper's Entry to Record the Collection of the Note and ...