On September 1, Monmouth Microwaves Ltd.signed a 9%, five-month bank loan payable for $9,000.The amount of interest to be accrued at December 31, assuming adjusting entries have not been previously made, is

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The interest for a 5-month period on a $9,000 loan at 9% annual interest rate is calculated as follows: Interest = Principal x Rate x Time = $9,000 x 9% x (5/12) = $337.50. Since the question asks for the interest accrued by December 31, which is 4 months into the loan, the calculation should be: $9,000 x 9% x (4/12) = $270.