2. On August 1, Jackson Radiology signed a one-year note receivable of $60,000 with interest at of 15% payable every six months. Jackson properly accrued interest on the note on December 31. What journal entry would Jackson make on the following February 1 to record the interest payment received on that date? a. Debit Cash and credit Interest Revenue for $4,500 b. Debit Cash and credit Interest Revenue for $750 c. Debit Cash for $4,500, credit Interest Receivable for $3,750, and credit Interest Revenue for $750 d. Debit Cash for $750, debit Interest Receivable for $3,750, and credit Interest Revenue for $4,500
2. On August 1, Jackson Radiology signed a one-year note receivable of $60,000 with interest at of 15% payable every six months. Jackson properly accrued interest on the note on December 31. What journal entry would Jackson make on the following February 1 to record the interest payment received on that date? a. Debit Cash and credit Interest Revenue for $4,500 b. Debit Cash and credit Interest Revenue for $750 c. Debit Cash for $4,500, credit Interest Receivable for $3,750, and credit Interest Revenue for $750 d. Debit Cash for $750, debit Interest Receivable for $3,750, and credit Interest Revenue for $4,500
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:2. On August 1, Jackson Radiology signed a one-year note receivable of $60,000 with interest at of 15%
payable every six months. Jackson properly accrued interest on the note on December 31. What journal
entry would Jackson make on the following February 1 to record the interest payment received on that
date?
a. Debit Cash and credit Interest Revenue for $4,500
b. Debit Cash and credit Interest Revenue for $750
c. Debit Cash for $4,500, credit Interest Receivable for $3,750, and credit Interest Revenue for $750
d. Debit Cash for $750, debit Interest Receivable for $3,750, and credit Interest Revenue for $4,500
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