Chase County Bank agrees to lend Agler Brick Company $300,000 on January 1, 2009. Agler Brick Company signs a $300,000, 8%, 9-month note on that date.

Which entry below would be made by Agler Brick Company for June 30 financial statements if Agler has not yet recognized interest on the note?

A Interest Payable 12,000

Cash 12,000

B Interest Payable 12,000

Interest Expense 12,000

C Interest Expense 12,000

Interest Payable 12,000

D Interest Expense 12,000

Cash 12,000