A company signed a \$200,000, 6% 9-month note payable on April 1st. What is the adjusting entry for interest expense on December 31st of the same year?

• A. Debit Interest Expense \$12,000; Credit Interest Payable \$12,000.
• B. Debit Interest Expense \$9,000; Credit Interest Payable \$9,000.
• C. Debit Interest Payable \$9,000; Credit Interest Expense \$9,000.
• D. Debit Interest Payable \$12,000; Credit Interest Expense \$12,000.

Answer: (B)