Young Company lends Dobson industries $40,000 on August 1, 2014, accepting a 9-month, 12% interest note. If Young prepares it financial statements as of December 31, 2014, what adjusting entry must it make? $\begin{array}{lll}
\text { a. Interest Receivable } & 2,000 & \
\text { Interest Revenue } & & 2,000 \
\text { b. Accounts Receivable } & 2,000 & \
\text { Interest Receivable } && 2,000 & \
\text { c. Cash } & 2,000 \
\text {Interest Revenue } & & 2,000 \
\text { d. Notes Receivable } & 2,000 & \

\text { Interest Revenue } & & 2,000 \

\end{array}$

Question

Young Company lends Dobson industries $40,000 on August 1, 2014, accepting a 9-month, 12% interest note. If Young prepares it financial statements as of December 31, 2014, what adjusting entry must it make? $\begin{array}{lll}
\text { a. Interest Receivable } & 2,000 & \
\text { Interest Revenue } &   & 2,000 \
\text { b. Accounts Receivable } & 2,000 & \
\text { Interest Receivable } && 2,000 & \
\text { c. Cash  }  & 2,000 \
\text {Interest Revenue }  & & 2,000  \
\text { d. Notes Receivable } & 2,000 & \
 
\text { Interest Revenue } & & 2,000 \

\end{array}$

Quizplus · Accepted Answer

The Answer of Young Company lends Dobson industries $40,000 on August 1, 2014, accepting a 9-month, 12% interest note. If Young prepares it financial statements as of December 31, 2014, what adjusting entry must it make? $\begin{array}{lll}
\text { a. Interest Receivable } & 2,000 & \
\text { Interest Revenue } &   & 2,000 \
\text { b. Accounts Receivable } & 2,000 & \
\text { Interest Receivable } && 2,000 & \
\text { c. Cash  }  & 2,000 \
\text {Interest Revenue }  & & 2,000  \
\text { d. Notes Receivable } & 2,000 & \
 
\text { Interest Revenue } & & 2,000 \

\end{array}$

Young Company Lends Dobson Industries $40,000 on August 1, 2014