Ye Olde Christmas Shop Signs a Three-Month Note Payable to Help

Ye Olde Christmas shop signs a three-month note payable to help finance increases in inventory for the Christmas shopping season.The note is signed on October 1 in the amount of $30000 with annual interest of 6%.What is the adjustment to be made on December 31 for the interest expense accrued to that date if no adjustments have been made previously for the interest?

A) increase Interest Expense $150 increase Interest Payable $150
B) increase Interest Expense $300 increase Interest Payable $300
C) increase Interest Expense $450 increase Interest Payable $450
D) increase Interest Expense $1800 increase Note Payable $1800