Assume that the $2,000,90-day,8 percent note was received on August 31 and that the fiscal year ended on September 30.The adjusting entry that would be made to record the interest receivable is (amounts rounded to nearest dollar):

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The interest for one month (August 31 to September 30) on a $2,000 note at 8% annual interest is calculated as: $2,000 * 8% * (30/360) = $13. The adjusting entry records this interest as receivable and income.

Assume That the $2,000,90-Day,8 Percent Note Was Received on August