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Harper Company lends Hewell Company $160,000 on December 1, accepting a four- month, 6% interest note. Harper Company prepare
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Answer #1

Option B

On Dec 31, adjustment of interest need to be booked.

Amount of interest receivable = =160,000×6%×1/12 = $800

Hence JE is

Interest receivable. Dr. 800

To interest revenue. 800

Option B is correct

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