Use the Following Information for Questions
London Bank and Trust

Use the following information for questions
London Bank and Trust agrees to lend the Beckham Company £2,000,000 on January 1, 2010.Beckham Company signs a ₤2,000,000, 6%, 9-month note.
-Assuming that monthly accruals are not made, what adjusting entry is required if Beckham Company prepares financial statements on June 30?

A) $\begin{array} { l } \text { Interest Expense }&60,000 \\ \text {Interest Payable. }&&60,000 \\\end{array}$

B) $\begin{array} { l }\text { Interest Expense }&60,000 \\ \text { Cash}&&60,000 \\\end{array}$

C) $\begin{array} { l }\text { Interest Expense }&80,000 \\ \text {Cash }&&80,000 \\\end{array}$

D) $\begin{array} { l }\text { Interest Payable}&80,000 \\ \text { Interest Expense}& &80,000 \\\end{array}$