in which journal would you most likely record accrued interest receivable? course hero

What is the journal entry for accrued interest on receivable?

The journal entry to record accrued interest on a note receivable at year end is: A. debit Cash and credit Interest Receivable. B. debit Interest Receivable and credit Note Receivable. C. debit Note Receivable and credit Interest Revenue. D. debit Interest Receivable and credit Interest Revenue.

What is accrued interest and how do I record it?

Now journalize the single adjusting entry to record accrued interest revenue on any applicable note(s) on DecemberDecember 31, 20162016, the fiscal year-end. Remember, when accruing …

What is the journal entry for interest paid to a customer?

A logical substantive test for accrued interest receivable would be to A. Verify the cost, carrying value, and market value of notes receivable B. Verify the interest income by a calculation …

What is interest interest receivable?

View Winter 2020 homework solutions - Week 7.docx from ACCOUNTING 152 at Humber College. Problem 3-8A (35 minutes) Part 1 2020 d. 30 Depreciation Expense, Building. 3,903 …

What is record interest?

Recording interest allocates interest expenses to the appropriate accounts in your books. That way, you can stay organized and better manage your accounting books.

How to calculate accrued interest?

Once you know these three pieces of information, you can plug them into the accrued interest formula: Accrued Interest = [Interest Rate X (Time Period / 365)] X Loan Amount.

Do you have to record interest on a loan?

When you take out a loan or line of credit, you owe interest. You must record the expense and owed interest in your books.

Is accrued interest a receivable or payable?

Because it’s accrued and not yet paid, it can be a payable (if you’re the borrower) or receivable (if you’re the lender). When you accrue interest as a lender or borrower, you create a journal entry to reflect the interest amount that accrued during an accounting period.

What was the interest rate on the 2006 Esquire clothing loan?

The Esquire Clothing Company borrowed a sum of cash on October 1, 2006, and signed a note payable. The annual interest rate was 12% and the company's year 2006 income statement reported interest expense of $1,260 related to this note. What was the amount borrowed?

What was the Wazoo Times liability in 2006?

The Wazoo Times Newspaper Company showed a $11,200 liability on its 2006 balance sheet for subscription revenue received in advance. During 2007, $62,000 was received from customers for subscriptions and the 2007 income statement reported subscription revenue of $63,700. What is the liability amount for subscription revenue received in advance that will appear in the 2007 balance sheet?