On August 1, Year 1, Bellisa Company issued a $10,000 6%, 1-year note to Citizens Bank. Which of the following entries reflects the adjustment required as of December 31, Year 1?
A.
| Interest Payable | 600 | |
| Interest Expense | 600 |
B.
| Interest Expense | 250 | |
| Interest Payable | 250 |
C.
| Interest Expense | 250 | |
| Notes Payable | 250 |
D.
| Interest Expense | 600 | |
| Interest Payable | 600 |
Answer: B
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