* knterest is caiculated by multiplying the principal times the annual interest rate times the time period the note is outstanding. On September 1, Banner Co, borrowed $70,000 from the City Bank for five months at 9%. Which adjustment will Banner Co. make on December 31 before issuing its financial statements? increase both Interest Expense and Notes Payable by $2,625 increase both Interest Expense and Interest Payable by $1,575 Increase both Interest Expense and Notes Payable by $6,300 increase both Interest Expense and Interest Payable by $2,100