Harper Company lends Hewell Company $39,600 on March 1, accepting a 4-month, 8% interest note. Harper Company
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Question:
Harper Company lends Hewell Company $39,600 on March 1, accepting a 4-month, 8% interest note. Harper Company prepares financial statements on March 31. What related adjusting entry should be made before the financial statements can be prepared?
a.
| Account | Debit | Credit |
|---|---|---|
| Cash | 264 | |
| Interest Revenue | 264 |
b.
| Account | Debit | Credit |
|---|---|---|
| Interest Receivable | 1,056 | |
| Interest Revenue | 1,056 |
c.
| Account | Debit | Credit |
|---|---|---|
| Interest Receivable | 264 | |
| Interest Revenue | 264 |
d.
| Account | Debit | Credit |
|---|---|---|
| Note Receivable | 39,600 | |
| Cash | 39,600 |
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