On October 1, Lawrence Company Borrowed $60,000 from Fourth National

Multiple Choice

On October 1, Lawrence Company borrowed $60,000 from Fourth National Bank on a 1-year, 7% note. If the company's fiscal year ends as of December 31, Lawrence should make an entry to increase

A) interest payable, $1,050.
B) prepaid interest, $3,150.
C) notes payable, $1,050.
D) interest expense, $4,200.