Starr Corporation loaned $450,000 to another corporation on December 1, 2014 and received a 3 month, 8 interest bearing note with a face value of $450,000 What adjusting entry should Starr make on December 31, 2014 A) Debit Interest Receivable and credit Interest Revenue, $9,000 B) Debit Interest R...

Starr Corporation loaned $450,000 to another corporation on December 1, 2014 and received a 3-month, 8% interest-bearing

Question:

Starr loaned $450,000 to another on December 1, 2014 and received a 3-month, 8% interest-bearing note with a of $450,000. What adjusting entry should Starr make on December 31, 2014?
A) Debit Interest Receivable and credit Interest Revenue,..................$9,000
B) Debit Interest Receivable and credit Interest Revenue,..................$3,000
C) Debit Cash and credit Interest Receivable,.................................$9,000
D) Debit Cash and credit Interest Revenue,.................................. $3,000
Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may... Face Value
Face value is a financial term used to describe the nominal or dollar value of a security, as stated by its issuer. For stocks, the face value is the original cost of the stock, as listed on the certificate. For bonds, it is the amount paid to the...