First State Bank lends Dorchester Company $100,000 on March 1, accepting a one year, 5% interest note. First State Bank prepares financial statements on March 31. What adjusting entry should be made March 31st before the financial statements can be prepared? debit Note Receivable 100,000; credit Cash 100,000 debit Accounts Receivable 5,000; credit Interest Revenue 5,000 debit Interest Payable 4,167; credit Interest Revenue 4,167 debit Interest Receivable 417; credit Interest Revenue 417

First State Bank lends Dorchester Company $100,000 on March 1, accepting a one year, 5% interest note. First State Bank prepares financial statements on March 31. What adjusting entry should be made March 31st before the financial statements can be prepared? debit Note Receivable 100,000; credit Cash 100,000 debit Accounts Receivable 5,000; credit Interest Revenue 5,000 debit Interest Payable 4,167; credit Interest Revenue 4,167 debit Interest Receivable 417; credit Interest Revenue 417

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter9: Accounting For Receivables

Section: Chapter Questions

Problem 22MC: A company collects an honored note with a maturity date of 24 months from establishment, a 10%...

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