A Company Has a 4-Month, 11%, $20,000 Notes Payable Account

A company has a 4-month, 11%, $20,000 Notes Payable account in its general ledger at the end of the year. The note matures two months after the end of the accounting period. Which statement is true?

A) Interest revenue must be accrued at the end of the accounting period.
B) The notes payable would generate a gain if the note is paid off early.
C) The interest was paid when the cash was borrowed.
D) Interest expense must be accrued at the end of the accounting period.