The required half of the adjusting entry for this situation is to record the accrued interest as revenue. It involves debiting the interest receivable account and crediting the interest revenue account.
The required half of the adjusting entry for this situation is to record the accrued interest as revenue. Since Bubbles Office Supply earned around $600 of interest on investments, we need to debit the interest receivable account for $600. This will show that Bubbles Office Supply is owed $600 in interest that has not been received yet. On the other side, we need to credit the interest revenue account for $600. This will show that Bubbles Office Supply has earned $600 in interest revenue for the current year.