A Gift Shop Signs a Three-Month Note Payable to Help

A gift shop signs a three-month note payable to help finance increases in inventory for the Christmas shopping season. The note is signed on November 1 in the amount of $30,000 with annual interest of 6%. What is the adjusting entry to be made on December 31 for the interest expense accrued to that date, if no entries have been made previously for the interest?

A) $\begin{array}{l}\text { Interest Expense }........................ &300 \\\text { Interest Pavable } .........................&& 300 \\ \end{array}$
B) $\begin{array}{lll}\text { Interest Expense } & 450 & \\\text { Interest Payable } & & 450\end{array}$
C) $\begin{array}{lll}\text { Interest Expense } &300 & \\\text { Cash } & & 300\end{array}$
D) $\begin{array}{lll}\text { Interest Expense } & 450 & \\\text { Note Pavahle } & & 450\end{array}$