Harding Company Borrowed $10,000 on October 1, 2013

Multiple Choice

Harding Company borrowed $10,000 on October 1, 2013. Harding issued a one year 6% discount note payable. The adjusting entry necessary to record accrued interest on December 31, 2013 would include a:

A) debit to Discount on Notes Payable of $150.
B) credit to Interest Payable for $150.
C) debit to Interest Expense for $150.
D) none of these.