Answer:
Dr Interest income accrued $288
Cr Interest income revenue $288
Explanation:
When preparing financial statements at the end of March,there is a need to recognize the interest income of one month,that is the interest accrued from 1st March to the end of March in the books of Harper Company,which is computed thus:
$28,800*12%*1/12=$288
The accrued interest income should be debited to accrued income and credit interest income,since an increase in income is naturally a credit in the income account and accrued interest is an asset that should be debited.
