clark rentals company faced the following situations. view the situations. requirement 1. journalize the…

clark rentals company faced the following situations. view the situations. requirement 1. journalize the adjusting entry needed at december 31, 2023, for each situation. consider each fact separately (omit explanations from any journal entries.) a. the business has interest expense of $3,800 that it must pay early in january 2024. accounts debit credit a. interest expense 3,800 interest payable 3,800 b. interest revenue of $4,000 has been earned but not yet received. accounts debit credit b.

clark rentals company faced the following situations. view the situations. requirement 1. journalize the adjusting entry needed at december 31, 2023, for each situation. consider each fact separately (omit explanations from any journal entries.) a. the business has interest expense of $3,800 that it must pay early in january 2024. accounts debit credit a. interest expense 3,800 interest payable 3,800 b. interest revenue of $4,000 has been earned but not yet received. accounts debit credit b.

Answer

Explanation:

Step1: Identify the adjusting - entry concept for accrued revenue

When interest revenue has been earned but not received, it is an accrued revenue situation. We need to recognize the revenue and create a receivable.

Step2: Determine the accounts to debit and credit

Debit the Interest Receivable account to record the amount owed to the company, and credit the Interest Revenue account to recognize the revenue earned.

Answer:

Accounts Debit Credit
Interest Receivable 4000
Interest Revenue 4000