Green Ski Equipment Company Borrowed $6000 from Jackson County Community

Green Ski Equipment Company borrowed $6000 from Jackson County Community Bank on November 1 by issuing a 12% 3-month note.Prior to adjustment at the end of the month the company's records included the following tabular analysis: $\begin{array}{llcc} \underline{\text { Assets } } &= & \underline{\text { Liabilities }} &+\underline{ \text { Stockholders' Equity} }\end{array}$

$\begin{array}{c}\begin{array}{lll}\\\\\text {Bal.}\\\hline \text {Dec. 31}\\\hline \text {Adj. Bal.}\\\hline \end{array}\begin{array}{l}\\\underline{\text { Cash }}=\\7,500 \\\hline \\\hline \\\hline\end{array}\begin{array}{c}\text {Interest}\\\underline{\text { Payable }}+\\\\\hline\\\hline\\\hline \end{array}\begin{array}{c}\text {Notes}\\\underline{\text {Payable}}+\\6,000\\\hline\\\hline\\\hline\end{array}\begin{array}{c}\text {common}\\ \underline{\text {Stock}}+\\\\\hline\\\hline\\\hline\end{array}\begin{array}{l}\\\underline{\text {Revenue }} -\\\\\hline-2\\\hline-2\\\hline \end{array}\begin{array}{lll}\text { Supplies }\\\underline{\text {Expense}} \\\\\hline \\\hline \\\hline\end{array}\end{array}$
The adjusting entry at December 31 will include

A) an increase to Notes Payable of $180.
B) a decrease to Cash of $120.
C) an increase to Interest Expense of $120.
D) an increase to Interest Payable of $180.