Miranda Company borrowed $123,000 cash on September 1, 2019, and signed a one-year 4%, interest-bearing note payable. Assume no adjusting entries have been made during the year. Which of the following would be the required adjusting entry at the end of the December 31, 2019 accounting period?

Multiple Choice

• Interest payable	1,640
  Interest expense		1,640

• Interest expense	4,920
  Interest payable		4,920

• Notes payable	123,000
  Interest expense	4,920
  Cash		127,920

• Interest expense	1,640
  Interest payable		1,640