Admire County Bank Agrees to Lend Givens Brick Company $\$ 300,000$

Admire County Bank agrees to lend Givens Brick Company $\$ 300,000$ on January 1. Givens Brick Company signs a $\$ 300,000,8 \% , 9$ -month note. What is the adjusting entry required if Givens Brick Company prepares financial statements on June $30 ?$

A) $\begin{array} { l } \text { Interest Expense }&12,000 \\ \text { Interest Payable }&&12,000 \\\end{array}$

B) $\begin{array} { l }\text { Interest Expense }&12,000 \\ \text {Cash }&&12,000 \\\end{array}$

C) $\begin{array} { l } \text { Interest Payable }&12,000 \\ \text { Cash}&&12,000 \\\end{array}$

D) $\begin{array} { l } \text { Interest Payable }&12,000 \\ \text {Interest Expense }&&12,000 \\\end{array}$