Barber Company lends Monroe Company $30,000 on April 1, accepting a four-month, 6% interest note. Barber Company prepares financial statements on April 30. What adjusting entry should be made before the financial statements can be prepared? $\begin{array}{lrr}
\text { a. Note Receivable } .......................... & 30,000 & \
\text { Cash } ..............................................& & 30,000 \
\text { b. Interest Receivable }.................... & 150 \
\text { Interest Revenue }.......................... && 150 & \
\text { c. Cash } ............................................& 150\
\text { Interest Revenue } ..........................&& 150\
\text { d. Interest Receivable } ....................& 450 & \
\text { Interest Revenue } ..........................& & 450
\end{array}$

Question

Barber Company lends Monroe Company $30,000 on April 1, accepting a four-month, 6% interest note. Barber Company prepares financial statements on April 30. What adjusting entry should be made before the financial statements can be prepared? $\begin{array}{lrr}
\text { a. Note Receivable } ..........................  & 30,000 & \
\text { Cash } ..............................................&   & 30,000 \
\text { b. Interest Receivable }.................... &   150 \
\text {  Interest Revenue }.......................... && 150 & \
\text { c. Cash }  ............................................& 150\
\text {  Interest Revenue } ..........................&& 150\
\text { d. Interest Receivable } ....................& 450 &   \
\text { Interest Revenue } ..........................& & 450
\end{array}$

Quizplus · Accepted Answer

The Answer of Barber Company lends Monroe Company $30,000 on April 1, accepting a four-month, 6% interest note. Barber Company prepares financial statements on April 30. What adjusting entry should be made before the financial statements can be prepared? $\begin{array}{lrr}
\text { a. Note Receivable } ..........................  & 30,000 & \
\text { Cash } ..............................................&   & 30,000 \
\text { b. Interest Receivable }.................... &   150 \
\text {  Interest Revenue }.......................... && 150 & \
\text { c. Cash }  ............................................& 150\
\text {  Interest Revenue } ..........................&& 150\
\text { d. Interest Receivable } ....................& 450 &   \
\text { Interest Revenue } ..........................& & 450
\end{array}$

Barber Company Lends Monroe Company $30,000 on April 1, Accepting