Generous Inc

Multiple Choice

Generous Inc.lends Blue Inc.$40,000 on April 1 and receives a four-month,4.5% interest-bearing note.Generous Inc.prepares financial statements on April 30.What adjusting entry should be made by Generous Inc.before its financial statements are prepared?

A) Debit Note Receivable and credit Cash for $40,000.
B) Debit Interest Receivable and credit Interest Revenue for $150.
C) Debit Cash and credit Interest Revenue for $150.
D) Debit Interest Receivable and credit Interest Revenue for $600.