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    Adjusting Entry - Interest Receivable

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    Adjusting Entries: Interest receivable at 1/1/06 was $5,000. During 2006 cash received from debtors for interest on outstanding notes receivable amounted to $6,000. The 2006 income statement showed interest revenue in the amount of $8,900. You are to provide the missing adjusting entry that must have been made, assuming reversing entries are not made. For each journal entry write Dr for debit and Cr for credit.

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    The interest revenue is $8,900. The interest received relating to this revenue is ...

    Solution Summary

    The solution explains how to prepare the adjusting entry for interest receivable.