XYZ Company lent $9,000 at 10% interest on December 1, 2019. The amount plus all interests accrued will be collected after 1 year. At the end of December, which of the following journal entry is required to take up the interest income? Select one: a. Debit Cash $900; Credit Interest Revenue $900 b. Debit Interest Revenue $75; Credit Interest Receivable $75 c. Debit Interest Receivable $900; Credit Unearned Revenue $900

FINANCIAL ACCOUNTING
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Chapter1: Financial Statements And Business Decisions
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XYZ Company lent $9,000 at 10% interest on December 1, 2019. The amount plus all interests accrued will be collected after 1 year. At
the end of December, which of the following journal entry is required to take up the interest income?
Select one:
a. Debit Cash $900; Credit Interest Revenue $900
b. Debit Interest Revenue $75; Credit Interest Receivable $75
c. Debit Interest Receivable $900; Credit Unearned Revenue $900
d. Debit Interest Receivable $75; Credit Interest Revenue $75
Transcribed Image Text:XYZ Company lent $9,000 at 10% interest on December 1, 2019. The amount plus all interests accrued will be collected after 1 year. At the end of December, which of the following journal entry is required to take up the interest income? Select one: a. Debit Cash $900; Credit Interest Revenue $900 b. Debit Interest Revenue $75; Credit Interest Receivable $75 c. Debit Interest Receivable $900; Credit Unearned Revenue $900 d. Debit Interest Receivable $75; Credit Interest Revenue $75
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