Question

The interest accrued to 31 December 2019 on notes receivable is composed of the following:
Platteville Plumbers, 12%, 6 months, due March 31, 2020 $1,350 Bilder Construction, 14%, 6 months, due June 14,2020 295 Beverly’s Building, 12%, 6 months, due June 26, 2020 23 Total $1,668
Note that the balance in notes receivable account of $45,000 that appeared on the trial balance on November 30, 2019 is a note receivable from Platteville Plumbers.
The interest accrued at December 31, 2019 on notes payable of $15,000 @ 12% is $1,800. Interest is payable on January 2, 2020 and the note is due in 2020.

Prepare Adjusting entry on 31-Dec 2019

Answer 1

Date	Account Title and Explanation	Debit	Credit
Dec 31,2020	Interest receivable	$        1,668
	Interest revenue		$        1,668
	(To record accrued interest revenue)
Dec 31,2020	Interest expense	$        1,800
	Interest payable		$        1,800
	(Entry to record accrued interest expense)

answered by: anonymous