On December 1,Casualty Insurance Company Borrowed $50,000 at a 6

Multiple Choice

On December 1,Casualty Insurance Company borrowed $50,000 at a 6.0% interest rate from One Mutual Bank.The note payable plus interest will not be paid until April 1 of the following year.The company's annual accounting period ends on December 31.The adjusting entry needed on December 31 is:

A) No entry required.
B) Debit Interest Expense,$250;credit Interest Payable,$250.
C) Debit Interest Expense,$250;credit Note Payable,$250.
D) Debit Interest Payable,$1,000;credit Interest Expense,$1,000.
E) Debit Interest Expense,$1,000;credit Interest Payable,$1,000.