On October 1, 2006, a company sold services to a customer and accepted a note in...

  

  

 

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On October 1, 2006, a company sold services to a customer and accepted a note in exchange with a P120,000 face value and an interest rate of 10%. The note requires that both the principal and interest be paid at the maturity date, December 1, 2007. The company's accounting period is the calendar year. What adjusting entry (related to this note) will be required at December 31, 2006 on the company's books? 3,000 a. Deferred interest income Interest receivable b. Interest income Interest receivable 3,000 3,000 3,000 c. Interest receivable Deferred interest income d. Interest receivable Interest income 3,000 3,000 3,000 3,000 On October 1, 2006, a company sold services to a customer and accepted a note in exchange with a P120,000 face value and an interest rate of 10%. The note requires that both the principal and interest be paid at the maturity date, December 1, 2007. The company's accounting period is the calendar year. What adjusting entry (related to this note) will be required at December 31, 2006 on the company's books? 3,000 a. Deferred interest income Interest receivable b. Interest income Interest receivable 3,000 3,000 3,000 c. Interest receivable Deferred interest income d. Interest receivable Interest income 3,000 3,000 3,000 3,000

Answer rating: 100% (QA)

ANS WER c Interest rece ivable 3 000 Def erred intere... View the full answer