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Starr Corporation loaned $600,000 to another corporation on December 1, 2020 and, in exchange, received a 3-month, 8% interest-bearing note with a face value of $600,000. What adjusting entry should Starr
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Starr Corporation loaned $600,000 to another corporation on December 1, 2020 and, in exchange, received a 3-month, 8% interest-bearing note with a face value of $600,000. What adjusting entry should Starr make on December 31, 2020

User Irudyak
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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)

User Firoz
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