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

                          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)

the answer is a.

by: nicholas dooley

answer; read and consider the content of the items;