Blue Inc. has a year-end of June 30. On December 1, 2020, the company signed a 10-month, 5% note receivable for $28,000. The adjusting entry required at year-end is: Question 14 options: DR Interest receivable $1,400 CR Interest income $1,400 DR Interest income $1,167 CR Interest receivable $1,167 DR Interest receivable $817 CR Interest income $817 DR Interest income $117 CR Interest receivable $117

Interest income for 7 months i.e. from Dec 1, 2020 to June 30 = 28,000 x 5% x 7/12…

Answered: Blue Inc. has a year-end of June 30.…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Blue Inc. has a year-end of June 30. On December 1, 2020, the company signed a 10-month, 5% note receivable for $28,000. The adjusting entry required at year-end is:

Question 14 options:

	DR Interest receivable $1,400 CR Interest income $1,400
	DR Interest income $1,167 CR Interest receivable $1,167
	DR Interest receivable $817 CR Interest income $817
	DR Interest income $117 CR Interest receivable $117

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