Respuesta :
Interest Receivable$40
Interest Revenue$40
The adjusting entry is shown below:
Interest receivable Dr $40
To Interest revenue $40(Being the accrued interest is recorded)
The computation is shown below:= $9,600 × 5 months × 1 months ÷ 12 months = $40
For recording this journal entry we debited the interest receivable as it increased the assets and credited the interest revenue as it also increased the revenues And the one month is taken from March 1 to March 31
Long-term bonds are one option for corporations to use for financing. Bonds address a commitment to reimburse a chief sum sometime not too far off and pay interest, typically on a semi‐annual premise. Bonds are typically issued concurrently to multiple lenders, in contrast to notes payable, which typically represent a single amount owed to a lender. Before the bonds reach maturity, these lenders—also known as investors—may sell them to another investor.
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