On May 1, the Chris Company Borrowed $30,000 from the Third

Multiple Choice

On May 1, the Chris Company borrowed $30,000 from the Third Street Bank on a 1-year, 6% note. If the company keeps its records on a calendar year, an adjustment is needed on December 31 to increase

A) Interest Payable, $900.
B) Interest Expense, $600.
C) Interest Payable, $1,200.
D) Interest Expense, $1,800.