On May 1, a Company Borrowed $30,000 from the First

On May 1, a company borrowed $30,000 from the First National Bank on a 1-year, 6% note. Assuming the company keeps its records on a calendar year basis, an entry is needed on December 31st to increase

A) interest expense by $600.
B) interest expense by $1,800.
C) interest payable by $900.
D) interest payable by $1,200.