Likert Company Calculates That Interest of $900 Has Accrued at December

Multiple Choice

Likert Company calculates that interest of $900 has accrued at December 31 on outstanding notes payable. How should Likert record this on December 31?

A) Prepaid Interest 900
Interest Expense 900
B) Interest Expense 900
Interest Payable 900
C) Interest Expense 900
Cash 900
D) Interest Payable 900
Interest Expense 900
E) None of the above