Credit to Cash for $1,600.On November 1, Year 1, Noble Co. borrowed $60,000 from South Bank and signed a 8%, six-month note payable, all due at maturity. The interest on this loan is stated separately.

At December 31, Year 1, the adjusting entry with respect to this note includes a:

Multiple Choice

Credit to Interest Payable for $800.

Credit to Notes Payable for $800.

Debit to Interest Expense for $1,600.