Liberty Company calculates that interest of $900 has accrued at December 31 on outstanding notes payable. How should Liberty record this on December 31?

	BALANCE SHEET							INCOME STATEMENT
	ASSETS		=	LIABILITIES	+	STOCKHOLDER'S EQUITY		REVENUE	-	EXPENSE
	Cash	Prepaid Interest		Interest Payable						Interest Expense
A)		+900				+900				-900
B)				+900		-900				+900
C)	-900					-900				+900
D)				-900		+900				-900
E)	None of the above