Perfect Restaurant borrowed $$140,000$ on October $1$ by signing a note payable to Town One Bank. The interest expense for each month is $$525.$ The loan agreement requires Perfect to pay interest on January $2$ for October, November and December.

Read the requirements.

NOV

Interest Revenue

$525$

To accrue interest revenue for November.

Make the adjusting entry to accrue monthly interest revenue for December.

Journal Entry

$\backslash$table$[[,$Date,Accounts and Explanation,Debit,Credit$],[$Dec$,31,$Interest Receivable,$525,],[,$Interest Revenue,,,$],[,,,,],[,,,,]]$

Post all three entries to the Interest Receivable account and enter the ending balance of the account as of December $31.$