The journal entry Pierce will record on June 30 will include a

A) credit to Interest Revenue for $2,400
B) debit to Cash for $3,600
C) credit to Cash for $2,400
D) credit to Interest Receivable for $1,200

Question

Kevin Murawski · Accepted Answer

Final Answer : B, Explanation :  On June 30, Pierce will receive $3,600 in interest revenue ($2,400 for June and $1,200 for July). Therefore, he will record a debit to Cash for $3,600. There is no need to record a credit to Interest Revenue or Interest Receivable since the interest revenue has already been earned and the interest receivable has already been recorded in a prior accounting period.

The journal entry Pierce will record on June 30 will include a

A) credit to Interest Revenue for $2,400
B) debit to Cash for $3,600
C) credit to Cash for $2,400
D) credit to Interest Receivable for $1,200

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Learning Objectives

Learning Objectives

Related questions

The journal entry Pierce will record on June 30 will include aA) credit to Interest Revenue for $2,400B) debit to Cash for $3,600C) credit to Cash for $2,400D) credit to Interest Receivable for $1,200

Definitions

Learning Objectives

Learning Objectives

Related questions

The journal entry Pierce will record on June 30 will include a

A) credit to Interest Revenue for $2,400
B) debit to Cash for $3,600
C) credit to Cash for $2,400
D) credit to Interest Receivable for $1,200