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Question
Harper Company lends Hewell Company $40,000 on March 1, accepting a four-month, 6% interest note. Harper Company prepares financial statements on March 31. What adjusting entry should be made before the financial statements can be prepared?
a. Cash 200
Interest Revenue 200
b. Interest Receivable 800
Interest Revenue 800
c. Interest Receivable 200
Interest Revenue 200
d. Notes Receivable 40,000
Cash 40,000
Answer
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