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

Multiple Choice

On October 1, Lawrence Company borrowed $60,000 from Fourth National Bank on a 1-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.