On November 1,2012,EZ Products Borrowed $48,000 on a 5%,10-Year Note $$\begin{array} { | l | r | r | } \hline \text { Interest expense } & 400 & \\\hline \text { Cash } & & 400 \\\hline\end{array}$$

On November 1,2012,EZ Products borrowed $48,000 on a 5%,10-year note with annual installment payments of $4,800 plus interest due on November 1 of each succeeding year.
-Which of the following journal entries would be needed at December 31,2012 to accrue interest from November 1 through year-end?

A) $$\begin{array} { | l | r | r | } \hline \text { Interest expense } & 400 & \\\hline \text { Cash } & & 400 \\\hline\end{array}$$
B) $$\begin{array} { | l | r | r | } \hline \text { Interest expense } & 400 & \\\hline \text { Interest payable } & & 400 \\\hline\end{array}$$
C) $$\begin{array} { | l | r | r | } \hline \text { Interest expense } & 400 & \\\hline \text { Accounts payable } & & 400 \\\hline\end{array}$$
D) $$\begin{array} { | l | r | r | } \hline \text { Cash } & 400 & \\\hline \text { Interest expense } & & 400 \\\hline\end{array}$$