6000 * .06 * 2/12 = 60
November + December = 2 months, not 3
Plus it does not matter when the note is due; kapish?
(since simple interest is being used).
Action Quest Games Inc. has the following information available for accruals that must be recorded for the year ended December 31, 2009. The company adjusts its accounts annually.
- Action Quest sold some equipment on November 1, 2009, in exchange for a 6%, $6,000 note receivable. The principal and interest are due on February 1, 2010.
For each situation, prepare the adjusting entry required at December 31, 2009. Round any calculations to the nearest dollar.
Dec. 31 Interest receivable 90
Interest Revenue 90
$6000 x 6% x 3/12
Though it's the wrong answer