On September 1, 2016, a Company Issued a $50,000, 6-Month

Multiple Choice

On September 1, 2016, a company issued a $50,000, 6-month, 9% note payable to purchase equipment.At December 31, 2016, the company records an adjusting entry to accrue interest incurred by not paid.The company pays the note with interest at the maturity date.
-Use the information above to answer the following question.What is the adjusting journal entry at December 31 to record the accrued interest on the note payable?

A) Debit Interest Expense and credit Interest Payable for $1,500
B) Debit Interest Expense and credit Interest Payable for $2,000
C) Debit Interest Expense and credit Interest Payable for $4,500
D) Debit Interest Payable and credit Cash for $2,000