Harper Company lends Hewell Company $13,200 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? Select the correct answer.

The journal entry is shown below:

Interest receivable A/c Dr $66

To Interest revenue A/c $66

(Being accrued interest is recorded)

The computation of accrued interest is shown below:

= Principal * rate of interest * number of months : (total number of months in a year)

= $13,200 * 6% * (1 months : 12 months)

= $66

The one month is calculated from March 1 to March 31