Explanation:
Interest receivable A/c Dr $4,950
To Interest revenue A/c $4,950
(Being accrued interest is recorded)
The computation of accrued interest is shown below:
= Loan amount × rate of interest × number of months ÷ (total number of months in a year)
= $660,000 × 9% × (1 months ÷ 12 months)
= $4,950
