Abc company agreed upon a ten-month, $18,000, 4% interest-bearing note receivable from xyz corporation on april 1, 2009 for a sale of a piece of equipment. in other words, abc gave xyz the equipment in exchange for a longer-term receivable. assuming all necessary adjusting entries were made at year end december 31, 2009 and interest will be received upon maturity, the entry abc makes on the note’s maturity date would include a:
a. debit to interest revenue for $60
b. credit to interest receivable for $540
c. debit to interest expense for $600
d. credit to note payable for $18,000
Answers: 1
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