On December 1,2015,a Company Lends a New Employee $20,000 to Assist

Multiple Choice

On December 1,2015,a company lends a new employee $20,000 to assist with her relocation expenses.The employee signs a 6-month note,with interest of 9%.The company prepares year-end financial statements at December 31.What is the required adjusting entry at December 31 as a result of this note transaction?

A) Debit Interest Revenue and credit Interest Receivable for $900
B) Debit Interest Receivable and credit Interest Revenue for $900
C) Debit Interest Revenue and credit Interest Receivable for $150
D) Debit Interest Receivable and credit Interest Revenue for $150