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

jenkins rentals company faced the following situations. view the situations. requirement 1. journalize the adjusting entry needed at december 31, 2023, for each situation. consider ea explanations from any journal entries.) a. the business has interest expense of $3,100 that it must pay early in january 2024. accounts debit credit a. interest expense 3,100 interest payable 3,100 b. interest revenue of $4,400 has been earned but not yet received. accounts debit credit b.

jenkins rentals company faced the following situations. view the situations. requirement 1. journalize the adjusting entry needed at december 31, 2023, for each situation. consider ea explanations from any journal entries.) a. the business has interest expense of $3,100 that it must pay early in january 2024. accounts debit credit a. interest expense 3,100 interest payable 3,100 b. interest revenue of $4,400 has been earned but not yet received. accounts debit credit b.

Answer

Explanation:

Step1: Identify the accounting principle

Accrual - basis accounting requires revenue to be recognized when earned and expenses to be recognized when incurred.

Step2: Determine the adjusting entry for interest revenue

Since interest revenue of $4,400 has been earned but not received, we need to record an asset (Interest Receivable) and recognize the revenue. Debit Interest Receivable 4,400; Credit Interest Revenue 4,400

Answer:

Accounts Debit Credit
Interest Receivable 4,400
Interest Revenue 4,400