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Annette [7]
3 years ago
13

Starr Corporation loaned $600,000 to another corporation on December 1, 2020 and, in exchange, received a 3-month, 8% interest-b

earing note with a face value of $600,000. What adjusting entry should Starr make on December 31, 2020
Business
1 answer:
prisoha [69]3 years ago
3 0

Answer:

                          Adjusting entry

Date    Account Title                      Debit        Credit

           Interest receivables           $4,000

           ($600,000*8%*1/12)

                   Interest revenue                            $4,000

           (To record accrued interest on note)

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