On October 1, 2018, Pennington Company Issued a $90,000, 10

On October 1, 2018, Pennington Company issued a $90,000, 10%, nine-month interest-bearing note. If the Pennington Company is preparing financial statements at December 31, 2018, the adjusting entry for accrued interest will include a:

A) credit to Notes Payable of $2,250.
B) debit to Interest Expense of $2,250
C) credit to Interest Payable of $4,500.
D) debit to Interest Expense of $3,375.

Correct Answer:

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