................

A business makes a loan payment on the 15th of each month. At the end of December, it has accrued 16 days worth of interest on the loan, which amounts to $450. The adjusting entry necessary at the end of the fiscal period ending December 31 would be recorded as a a. debit to Interest Expense and a credit to Interest Payable of $450 Ob. debit to Interest Expense and a credit to Prepaid Interest of $450 Oc. debit to Interest Payable and a credit to Interest Expense of $450 Od. debit to Prepaid Interest and a credit to Interest Expense of $450