Cheater borrowed $8,000 at 9% interest on May 1, 2018, with principal and interest due on October 31, 2019. The company's fiscal year ends June 30, 2018. What adjusting entry is necessary on June 30, 2018? A) No entry. B) Interest expense Interest payable 240 240 C) Interest expense 120 120 Interest payable D) 120 Prepaid interest 120 Interest payable