Ask Question
BusinessBusiness
16 February, 01:10

XYZ Corporation loaned $600,000 to another corporation on December 1, 2020 and received a 3-month, 8% interest-bearing note with a face value of $600,000. What adjusting entry should Starr make on December 31, 2020

+4
Answers (1)
  1. 16 February, 04:34
    0
    Dr Interest Receivable 4,000

    Cr Interest Revenue 4,000

    Explanation:

    Preparation of XYZ Corporation Adjusting entry

    Since the XYZ Corporation loaned the amount of $600,000 to another corporation on December 1, 2020 in which XYZ Corporation received a 3 month and 8% interest-bearing note with a face value of $600,000, the first step to take is to find the interest bearing note which is calculated as 4,000 (1/12*8%*600,000) and the second step is to record the transaction as:

    Dr Interest Receivable 4,000

    Cr Interest Revenue 4,000

    (1/12*8%*600,000)
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “XYZ Corporation loaned $600,000 to another corporation on December 1, 2020 and received a 3-month, 8% interest-bearing note with a face ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers
You Might be Interested in
We want to change theBankAccountclass so that all accounts will have a monthly fee. When aBankAccountis created, its monthly fee is set and cannot be changed.
Answers (1)
Smiling Elephant, Inc., has an issue of preferred stock outstanding that pays a $6.40 dividend every year, in perpetuity. If this issue currently sells for $80.80 per share, what is the required return
Answers (1)
Choose the best answer. Healthy. Delicious. Drink Ovaltine! Which of the following claims represents the implied conclusion of this argument? Ovaltine is healthy. Ovaltine is delicious You should drink Ovaltine. None; this is not an argument.
Answers (1)
Checking account A charges a monthly service fee of $23 and a wire transfer fee of $7.50, while checking account B charges a monthly service fee of $14 and a wire transfer fee of $9.50.
Answers (1)
Merchandise that was purchased on the account was accepted by the Orion Company. As of December 31, Orion had recorded the transaction using the periodic method but did not include the merchandise in its inventory.
Answers (1)
New Questions in Business
Gilberto Company currently manufactures 70,000 units per year of one of its crucial parts. Variable costs are $1.80 per unit, fixed costs related to making this part are $70,000 per year, and allocated fixed costs are $35,000 per year.
Answers (1)
You plan to deposit $ 700 in a bank account now and $ 300 at the end of the year. If the account earns 4 % interest per year, what will be the balance in the account right after you make the second deposit?
Answers (1)
R. C. Barker makes purchasing decisions for his company. One product that he buys costs $50 per unit when the order quantity is less than 500. When the quantity ordered is 500 or more, the price per unit drops to $48.
Answers (1)
Positive steps used to reach your outcome goals are setting what kind of goal
Answers (1)
Is catalyst a reactant? Why or why not?
Answers (2)
Home » Business » XYZ Corporation loaned $600,000 to another corporation on December 1, 2020 and received a 3-month, 8% interest-bearing note with a face value of $600,000. What adjusting entry should Starr make on December 31, 2020
Sign Up Forgot Password?