Sheridan Company lends Carla Vista Company $9400 on April 1, accepting a four-month, 6% interest note. Sheridan Company prepares financial statements on April 30. What adjusting entry should be made before the financial statements can be prepared? Interest Receivable 188 Interest Revenue 188 Interest Receivable 47 Interest Revenue 47 Cash 47 Interest Revenue 47 Note Receivable 9400 Cash 9400

Sheridan Company lends Carla Vista Company $9400 on April 1, accepting a four-month, 6% interest note. Sheridan Company prepares financial statements on April 30. What adjusting entry should be made before the financial statements can be prepared? Interest Receivable 188 Interest Revenue 188 Interest Receivable 47 Interest Revenue 47 Cash 47 Interest Revenue 47 Note Receivable 9400 Cash 9400

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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On December 1, 2021, a company converted an existing account receivable in the amount of $6,000 to a note receivable to allow an extended payment period. The note is due in three months and includes an annual interest rate of 9%. The company prepares year-end financial statements on December 31 and recorded adjusting entries at that time. What entry should the company make on March 1, 2022, when the interest is paid at maturity? Multiple Choice Debit Cash and credit Notes Receivable for $6,135. Debit Cash for $6,135, credit Notes Receivable for $6,000, and credit Interest Revenue for $135. Debit Cash for $135 and credit Interest Revenue for $135. О Debit Cash for $135, credit Interest Receivable for $45, and credit Interest Revenue for $90.
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