The company determines that the interest expense on a note ...

[dbose]

The company determines that the interest expense on a note payable for period ending December 31 is 775 . This amount is payable on January 1 . Prepare the journal entries required on December 31 and January 1.

Question 2

What is the general rule for recognizing revenues in governmental funds?
 
  a. revenues should be recognized when the budget is adopted
  b. revenues should be recognized when available and measurable
  c. revenues should be recognized when collected in cash
  d. revenues may be recognized either when collected in cash or when the budget is adopted, at the option of the government

[tofugiraffe]

Answer to Question 1

Dec. 31 Interest Expense 775
Interest Payable 775
Jan. 1 Interest Payable 775
Cash 775

Answer to Question 2

b