Travis County Bank Agrees to Lend Backyard Corporation $200,000 on January

Travis County Bank agrees to lend Backyard Corporation $200,000 on January 1.Backyard signs a $200,000,4%,9-month note.Interest is due at maturity on September 30. What adjusting entry did Backyard make on June 30 before preparing its financial statements?

A) Debit interest expense $4,000; Credit interest payable $4,000
B) Debit interest expense $4,000; Credit cash $4,000
C) Debit interest payable $4,000; Credit cash $4,000
D) Debit interest payable $4,000; Credit interest expense $4,000 ½ of the annual interest must be accrued at June 30.