Harper Company lends Hewell Company $10,800 on March 1, accepting a four-month, 6% interest note. Harper Company prepares financial statements on March 31. What adjusting entry should be made before the financial statements can be prepared?a.Cash 54 Interest Revenue 54b.Interest Receivable 216 Interest Revenue 216c.Interest Receivable 54 Interest Revenue 54d.Note Receivable 10,800 Cash 10,800

Annual interest=Note value×6%=$10,800×6%=$648

Answered: Harper Company lends Hewell Company…

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%...

See similar textbooks

Related questions

Question

Harper Company lends Hewell Company $10,800 on March 1, accepting a four-month, 6% interest note. Harper Company prepares financial statements on March 31. What adjusting entry should be made before the financial statements can be prepared?

a.

Cash 54

    Interest Revenue 54

b.

Interest Receivable 216

       Interest Revenue 216

c.

Interest Receivable 54

       Interest Revenue 54

d.

Note Receivable 10,800

      Cash 10,800

Expert Solution

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions