Starr Corporation loaned $450,000 to another corporation on December 1, 2014 and received a 3-month, 8% interest-bearing note with a face value of $450,000. What adjusting entry should Starr make on December 31, 2014?
A) Debit Interest Receivable and credit Interest Revenue, $9,000.
B) Debit Cash and credit Interest Revenue, $3,000.
C) Debit Interest Receivable and credit Interest Revenue, $3,000.
D) Debit Cash and credit Interest Receivable, $9,000.
Correct Answer:
Verified
Q80: An adjusted trial balance
A) is prepared after
Q81: The income statement of Dolan Corporation for
Q82: During the first year of Wilkinson Co.'s
Q83: Chen Company's account balances at December 31,
Q84: Tate Company purchased equipment on November 1,
Q86: Mune Company recorded journal entries for the
Q87: Murphy Company sublet a portion of its
Q88: Maso Company recorded journal entries for the
Q89: A reversing entry should never be made
Q90: The income statement of Dolan Corporation for
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents