Unquiet Hands, Inc $$\begin{array} { | l | c | } \hline \text { Dr. } & \text { Iriterest payable } \\\hline \text { Cr. } & \text { Cash } \\\hline\end{array}$$

Multiple Choice

Unquiet Hands, Inc.borrowed $30,000 on October 1, 2019 at 6% interest with both principal and interest due on September 30, 2020.Which of the following journal entries should the firm use to accrue interest at the end of each month?

A) $$\begin{array} { | l | c | } \hline \text { Dr. } & \text { Iriterest payable } \\\hline \text { Cr. } & \text { Cash } \\\hline\end{array}$$
B) $\begin{array}{|c|c|}\hline \text { Dr. } & \text { Interest receivable } \\\hline \mathrm{Cr} . & \text { Interest payable } \\\hline\end{array}$

C) $\begin{array}{|l|l|}\hline \text { Dr. } & \text { Interest expense } \\\hline \mathrm{Cr} . & \text { Interest payable } \\\hline\end{array}$

D) $\begin{array}{|l|l|}\hline \text { Dr. } & \text { Interest payable } \\\hline \mathrm{Cr} . & \text { Interest expense } \\\hline\end{array}$