I'm get some problem in my tutorial question~
can someone help me solve it please?


QUESTION:

Maju Enterprise opened a fixed deposit account with Singa Bank Bhd on 1 March 2007.
The initial deposit was RM60,000 at an interest of 5% per annum.The term of the deposit was 1 year, and the interest received to be credited to the company's current account at the end of every 6 month.
Assume that Maju Entreprise's financial year ended 31 December each year.

Required:
a)Prepare an Interest Received Account for the above transaction.Show the posting to Accured Account.

b)Prepare journal entries for the above adjustment and posting to income statement.

First you need to calculate the interesest earned during the period.

On Jul 1, the interest is received @ 60,000 * 5% * 6/12. Interest = Principle * Rate * time
the Journal entry to record this is: Debit Cash for the amount Received and Credit Interest Revenue.

At Dec 31 the interest earned but not yet recorded is: 60,000 * 5% * 6/12.
The two accounts that are affected in this transaction are Interext Receivable and Interest Revenue.

In the Income Statement you will list Interest Revenue and then the amount in this account.

thx for ur healping^^~