Diablo Co Uses a Calendar Year for Accounting Purposes

Diablo Co. uses a calendar year for accounting purposes. On October 1, 2010, Diablo borrows $200,000 and signs a 9-month, 12% note payable. On December 31, 2010, Diablo Co. would

A) make an adjusting entry that would include a credit to Note Payable of $6,000.
B) make an adjusting entry that would include a credit to Cash of $6,000.
C) make an adjusting entry that would include a debit to Interest Expense of $12,000.
D) make an adjusting entry that would include a credit to Interest Payable of $6,000.
E) make no adjusting entry relative to this note.