requirement\n1. journalize the adjusting entry needed at december 31, 2023, for each situation. consider…

requirement\n1. journalize the adjusting entry needed at december 31, 2023, for each situation. consider each fact separately. (record debits first, then credits. exclude explanations from any journal entries.)\na. the business has interest expense of $3,100 that it must pay early in january 2024.\naccounts debit credit\na. interest expense 3,100\ninterest payable 3,100\nb. interest revenue of $4,400 has been earned but not yet received.\naccounts debit credit\nb.
Answer
Explanation:
Step1: Identify the accounts for earned - but - not - received revenue
When interest revenue has been earned but not received, we need to recognize the revenue and create a receivable.
Step2: Determine the debit and credit amounts
The amount of interest revenue earned is $4,400. We debit Interest Receivable to record the amount owed to us and credit Interest Revenue to recognize the income.
Answer:
| Accounts | Debit | Credit |
|---|---|---|
| Interest Receivable | 4,400 | |
| Interest Revenue | 4,400 |