On September 1, Kennedy Company loaned $104,000, at 12% annual interest, to a customer. Interest and principal will be collected when the loan matures one year from the issue date. Assuming adjustments are only made at year-end, what is the adjusting entry for accruing interest that Kennedy would need to make on December 31, the calendar year-end?
A. Debit Cash, $4160; credit Interest Revenue, $4160.
B. Debit Interest Receivable, $12,480; credit Cash, $12,480.
C. Debit Interest Expense, $4160; credit Interest Payable, $4160.
D. Debit Interest Expense, $12,480; credit Interest Payable, $12,480.
E. Debit Interest Receivable, $4160; credit Interest Revenue, $4160.
Answer: E
You might also like to view...
Briefly describe the difference between reach and frequency
What will be an ideal response?
An estimated liability:
A. Is an unknown liability of a certain amount. B. Can be the result of a lawsuit. C. Is not recorded until the amount is known for certain. D. Is a liability that may occur if a future event occurs. E. Is a known obligation of an uncertain amount that can be reasonably estimated.
People from the same demographic group, such as Latino or African American, are frequently members of different cultures
Indicate whether the statement is true or false.
Richard, the sales manager of a toy company, wanted to put forward an idea for improving the sales of the products to the board of directors. However, when he was presenting the idea in the monthly team meeting, the board members were not able to concentrate as they got distracted by Richard's slouched posture, his inability to look them in the eye, and his constant foot movement. In the given scenario, which of the following communication barriers prevented the board members from paying attention to Richard's idea?
A. Body language barriers B. Physical barriers C. Language barriers D. Organizational barriers