Starr Corporation loaned P90,000 to another corporation on December 1, 2021 and received a 3-month, 6% interest-bearing note with a face value of P90,000. What adjusting entry should Starr make on December 31, 2021? a. Debit Interest Receivable and credit Interest Revenue, P1,350. b. Debit Cash and credit Interest Revenue, P450. c. Debit Interest Receivable and credit Interest Revenue, P450. d. Debit Cash and credit Interest Receivable, P1,350.
Starr Corporation loaned P90,000 to another corporation on December 1, 2021 and received a 3-month, 6% interest-bearing note with a face value of P90,000. What adjusting entry should Starr make on December 31, 2021? a. Debit Interest Receivable and credit Interest Revenue, P1,350. b. Debit Cash and credit Interest Revenue, P450. c. Debit Interest Receivable and credit Interest Revenue, P450. d. Debit Cash and credit Interest Receivable, P1,350.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Starr Corporation loaned P90,000 to another corporation on December 1, 2021 and received a 3-month, 6% interest-bearing note with a face value of P90,000. What adjusting entry should Starr make on December 31, 2021?
a. Debit Interest Receivable and credit Interest Revenue, P1,350.
b. Debit Cash and credit Interest Revenue, P450.
c. Debit Interest Receivable and credit Interest Revenue, P450.
d. Debit Cash and credit Interest Receivable, P1,350.
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