Harper Company lends Hewell Company $36,000 on March 1, accepting a four-month, 4% interest note. Harper Company prepares financial statements on March 31. What adjusting entry should be made before the financial statements can be prepared? Oa. Cash 120 Interest Revenue 120 Ob. Interest Receivable 480 Interest Revenue 480 Oc. Interest Receivable 120 Interest Revenue 120 Od. Note Receivable 36,000 Cash 36,000

Harper Company lends Hewell Company $36,000 on March 1, accepting a four-month, 4% interest note. Harper Company prepares financial statements on March 31. What adjusting entry should be made before the financial statements can be prepared? Oa. Cash 120 Interest Revenue 120 Ob. Interest Receivable 480 Interest Revenue 480 Oc. Interest Receivable 120 Interest Revenue 120 Od. Note Receivable 36,000 Cash 36,000

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter9: Accounting For Receivables

Section: Chapter Questions

Problem 22MC: A company collects an honored note with a maturity date of 24 months from establishment, a 10%...

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Question

Harper Company lends Hewell Company $36,000 on March 1, accepting a four-month, 4% interest note. Harper Company prepares financial statements on March 31. What adjusting entry should be made before the
financial statements can be prepared?
Oa. Cash
120
Interest Revenue
120
Ob. Interest Receivable
480
Interest Revenue
480
Oc. Interest Receivable
120
Interest Revenue
120
Od. Note Receivable 36,000
Cash
36,000

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