the company has earned (but not recorded) $700 of interest revenue for the year ended december 31. the…

the company has earned (but not recorded) $700 of interest revenue for the year ended december 31. the interest payment will be received 10 days after the year - end on january 10. note: enter debits before credits. transaction general journal debit credit e record entry clear view general journal

the company has earned (but not recorded) $700 of interest revenue for the year ended december 31. the interest payment will be received 10 days after the year - end on january 10. note: enter debits before credits. transaction general journal debit credit e record entry clear view general journal

Answer

Explanation:

Step1: Identify the accounts affected

When interest revenue is earned but not yet received, we debit an asset account (Interest Receivable) and credit the revenue account (Interest Revenue).

Step2: Determine the amounts

The amount of interest revenue earned is $700. So, we debit Interest Receivable for $700 and credit Interest Revenue for $700.

Answer:

Transaction General Journal Debit Credit
e Interest Receivable 700
Interest Revenue 700