On August 1, 2012, Turner Manufacturing lends cash and accepts a $6,000 note receivable that offers 8% interest and is due in nine months. How would Turner record the year-end adjustment to accrue interest in 2012?

Name: On August 1, 2012, Turner Manufacturing lends cash and accepts a $6,000 note receivable that offers 8% interest and is due in nine months. How would Turner record the year-end adjustment to accrue interest in 2012?
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Question

Quizplus · Accepted Answer

Interest revenue = $6,000 x 8% x 5/12 = $200.

On August 1, 2012, Turner Manufacturing Lends Cash and Accepts