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jasper makes a $34,000, 90-day, 8% cash loan to clayborn company. jasper's entry to record the collection of the note and interest at maturity should be: (use 360 days a year.)

Respuesta :

Debit Cash $34,680.

Credit Interest Revenue $680.

Credit Notes Receivable $34,000.

  • Solution of the problem:

Jasper Debit cash $34,000

Credit Interest revenue =

$34,000 X 8 % X [tex]\frac{90}{360}[/tex] = $680

Debit Cash =

$34,000 + $680 = $34,680

Further Information

Interest revenue can be explained as money earned through lending money or money received from depositing or investing. Companies who have workload interest on loans consider the interest revenue as a primary source of income, which should be announced at the top of the income statement.

Interest expense is the cost of loaning money, while interest income is the money you acquire from investing. In addition, the earnings charge is typically tax-deductible, while interest income is taxable.

Learn more about credit interest revenue here:

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