Bigwin Inc Had a Loan Outstanding During the Month, and at the End

Multiple Choice

Bigwin Inc had a loan outstanding during the month, and at the end of the month it paid interest expense of $200.How would the event be recorded?

A) A decrease in cash and a decrease in loan payable.
B) An increase in interest expense and an increase in loan payable.
C) An increase in interest expense and a decrease in loan payable.
D) A decrease in cash and an increase in interest expense.