Answer :
Answer:
Interest receivable A/c Dr $225
To Interest revenue A/c $225
(Being the accrued interest is recorded)
Explanation:
The journal entry to record accrued interest is shown below:
On December 31
Interest receivable A/c Dr $225
To Interest revenue A/c $225
(Being the accrued interest is recorded)
For recording this transaction we debited the interest receivable as it reflect in current asset and credited the interest revenue for $225 as it depict income