On October 1 2017 Dakota Company Issued an $800000 10

Multiple Choice

On October 1 2017 Dakota Company issued an $800000 10% nine-month interest-bearing note. If the Dakota Company is preparing financial statements at December 31 2017 the adjusting entry for accrued interest will include a:

A) credit to Notes Payable of $20000.
B) debit to Interest Expense of $20000
C) credit to Interest Payable of $40000.
D) debit to Interest Expense of $30000.