Question

Young Company lends Dobson Industries $30,000 on August 1, 201X, accepting a 9-month, 12% interest note. If Young prepares it financial statement as of December 31, 201X, what adjusting entry must it make?

Question 1 options:

Interest Receivable…………….1,500

…………Interest Revenue………………….1,500

Cash…………………………….1,500

…………Interest Revenue…………………..1,500

Accounts Receivable…………..1,500

………….Interest Receivable………………..1,500

Notes Receivable………………1,500

………….Interest Revenue…………………..1,500