Problem
Use the information provided to account for receivables in each of the below, independent scenarios: Scenario 1: Jackpot Company, which has a December 31 year end, has the following notes receivable. Jackpot records adjusting entries only at year end. Issue date 1. Mar. 1/23 2. Sept. 1/24 3. Dec. 1/24 Term 3 years 6 months 1 year Amount $ 4,000 29.000 44.000 Interest rate 6% 5% 10% Interest payable Monthly, 1st of the month Upon maturity Monthly, last day of the month.
Task
1. Prepare the adjusting entry at December 31, 2024, to record accrued interest receivable.
2. Calculate the total interest revenue that will be reported in the December 31, 2024, financial statements.