Step #1: Transaction analysis

-Accounts Affected “Interest receivable”(asset) and “Interest income”(income)

-Effects on the Accounts Interest receivable is increased, Interest income is increased.
-Debit/Credit Asset is decreased through debit.
Income is decreased through credit.

Step #2 Adjusting journal Entry

JOURNAL
Date Account Titles Debit Credit
Dec 31, 2021 Interest receivable 9,000
Interest Income 9,000
To accrue interest income earned but not yet collected