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Question 1: Alpha Bank agrees to lend Beta Company $600,000 on March 1. Beta Company signs a $600,000, 10%, 12-month note. What is the adjusting entry required if Beta Company prepares financial statements on June 30?
A) Interest Expense 15,000
Cash 15,000
B) Interest Expense 20,000
Interest Payable 20,000
C) Interest Expense 15,000
Interest Payable 15,000
D) Interest Expense 20,000
Cash 20,000
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