On October 1, 2010, Billy's Beach Umbrellas Borrowed $2, 000 $\begin{array}{cc}\text { Interest Payable } & 120 \\\text { Cash } & 120\end{array}$

On October 1, 2010, Billy's Beach Umbrellas borrowed $2, 000 on a 12%, one-year note payable.Interest was payable semiannually.A correct adjusting entry was made on December 31, 2010, and a correct reversing entry was made on January 1, 2011.The entry that should be made on March 31, 2011, is

A)
$\begin{array}{cc}\text { Interest Payable } & 120 \\\text { Cash } & 120\end{array}$
B)
$\begin{array}{cc}\text { Interest Expense } & 60 \\\text { Interest Payable } & 60 \\\text { Cash } & 120\end{array}$
C)
$\begin{array}{cl}\text { Interest Expense } & 60 \\\text { Cash } & 60\end{array}$
D)
$\begin{array}{cc}\text { Interest Expense } & 120 \\\text { Cash } & 120\end{array}$