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Financials Statements: Adjusting Entry

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Harper Company lends Hewell Company $40,000 on March 1st, accepting a four-month, 6% interest note. Harper Company prepares financial statements on March 31st. What adjusting entry should be made before the financial statements can be prepared?

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Adjusting entry for Interest accrued on Note Receivable:
Date Details Debit Credit
Mar 31 Interest ...

Solution Summary

This solution explains how to deal with an adjusting entry on a financial statement.