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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
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 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
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