Andrew's Aviation earns 3% annual interest on its $84,000 of investments. Interest is paid every six months on June 30 and December 31.
A. If monthly financial statements are prepared, what adjusting entry should be made on January 31?
B. What effect on the January 31 balance sheet does the adjusting entry have?

Question

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The Answer of Andrew's Aviation earns 3% annual interest on its $84,000 of investments. Interest is paid every six months on June 30 and December 31.
A. If monthly financial statements are prepared, what adjusting entry should be made on January 31?
B. What effect on the January 31 balance sheet does the adjusting entry have?

Andrew's Aviation Earns 3% Annual Interest on Its $84,000 of Investments