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On October 1, 2013, you borrow $218,000 at 10% interest for 3 years and record...

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Accounting

On October 1, 2013, you borrow $218,000 at 10% interest for 3 years and record the promissory note. On April 1 and October 1 you are required to make semi annual interest payments to your creditor. On December 31, 2013, your adjusting journal entry should:

A-debit Interest Expense for $5,450 and credit Interest Payable for $5,450.

B-debit Interest Payable for $5,450 and credit Interest Expense for $5,450.

C-debit Interest Expense for $10,900 and credit Cash for $10,900.

D-debit Interest Expense for $10,900 and credit Interest Payable for $10,900.

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