Example 1 (there are over 80 different debit/credit transactions)
Record 1 of 3
Transaction:
Monthly interest of $360 was accrued on a notes receivable.
Account:
Current Assets
Description:
Accrued Interest Receivable
Affects
Balance Sheet:
Yes
Affects
Income Statement:
Yes
The
balance in the Accrued Interest Receivable account is a Debit.
Debit
Accounts Affected
Debit
Amt(s)
Debit
Account
Debit:
360.00
Accrued Interest Receivable
Credit
Accounts Affected
Credit
Amt(s)
Credit
Account
Credit:
360.00
Interest Income
Full
Explanation:
Accrued interest is debited because the entity is owed interest income for the month. Interest income is credited because the entity earned interest income for the month.
