On November 1,2015,ABC Corp

Multiple Choice

On November 1,2015,ABC Corp.borrowed $100,000 cash on a 1year,6% note payable that requires ABC to pay both principal and interest on October 31,2016.Given no prior adjusting entries have been recorded,the adjusting journal entry on December 31,2015,ABC's year end,would include a:

A) credit to Cash of $1,000.
B) debit to Interest Expense of $6,000.
C) credit to Interest Payable of $1,000.
D) credit to Note Payable of $1,000.