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

Multiple Choice

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

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