ABC lends Evergreen Inc. $40,000 on June 1, accepting a four-month, 6% interest note. ABC prepares financial statement on June 30. Which of the following represents correct adjusting entry pertaining this promissory note? Debit Note Receivable $40,000 O Credit Interest Revenue $600 debit Interest Receivable $200 Debit Cash $600
ABC lends Evergreen Inc. $40,000 on June 1, accepting a four-month, 6% interest note. ABC prepares financial statement on June 30. Which of the following represents correct adjusting entry pertaining this promissory note? Debit Note Receivable $40,000 O Credit Interest Revenue $600 debit Interest Receivable $200 Debit Cash $600
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![ABC lends Evergreen Inc. $40,000 on June 1, accepting a four-month, 6% interest note. ABC
prepares financial statement on June 30.
Which of the following represents correct adjusting entry pertaining this promissory note?
O Debit Note Receivable $40,000
O Credit Interest Revenue $600
debit Interest Receivable $200
O Debit Cash $600](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F97a41940-8f3f-49c5-abf9-20f70316395e%2Ff6f5504d-dfaa-42c3-be39-33ab3861c457%2Fpi73r9_processed.jpeg&w=3840&q=75)
Transcribed Image Text:ABC lends Evergreen Inc. $40,000 on June 1, accepting a four-month, 6% interest note. ABC
prepares financial statement on June 30.
Which of the following represents correct adjusting entry pertaining this promissory note?
O Debit Note Receivable $40,000
O Credit Interest Revenue $600
debit Interest Receivable $200
O Debit Cash $600
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