Speedy Corporation Borrowed $200,000 on March 1, 2012, Signing a One-Year

Multiple Choice

Speedy Corporation borrowed $200,000 on March 1, 2012, signing a one-year, 7% note payable to First State Bank. The adjusting entry required on December 31, 2012, includes a:

A) debit to Interest Expense of $14,000.
B) debit to Cash of $240,000.
C) credit to Interest Payable of $11,667.
D) credit to Interest Revenue of $11,667.