Garber Company lends Newell Company $20,000 on April 1, accepting a four-month, 6% interest note. Garber Company prepares financial statements on April 30. What adjusting entry should be made before the financial statements can be prepared?
a. Note Receivable 20,000 Cash 20,000
b. Interest Receivable 100 Interest Revenue 100
c. Cash 100 Interest Revenue 100
d. Interest Receivable 300 Interest Revenue 300
Ans: d. Interest Receivable 300 Interest Revenue 300
You might also like to view...
Which one of the following is not one of the five competitive forces that business strategists are supposed to take into account?
a. competition among business units within the firm b. the power of customers to affect pricing and reduce profit margins c. the threat of similar or substitute products d. the power of suppliers to influence the company's pricing
A difficulty associated with the equal store organization is that quantity discounts and buying power advantages are lost due to decentralized buying in branch locations
Indicate whether the statement is true or false