Question - On October 1, Sam's Painting Service borrows $209000 from National Bank on a 3-month, $209000, 4% note. What entry must Sam's Painting Service make on December 31 before financial statements are prepared?
A) Interest Expense 2090
Notes Payable 2090
B) Interest Payable 2090
Interest Expense 2090
C) Interest Expense 8360
Interest Payable 8360
D) Interest Expense 2090
Interest Payable 2090