Moss County Bank agrees to lend the Splish Brothers Company $605,000 on January 1. Splish Brothers Company signs a $605,000, 6%, 9-month note with interest and principle due at the end of 9 months. The adjustment required if Splish Brothers Company prepares financial statements on June 30 includes a(n)

• A. Increase to Interest Expense and a decrease to Cash for $18150.

• B. Decrease to Interest Payable and to Cash for $18150.

• C. Decrease to Interest Payable and to Interest Expense for $18150.

• D. Increase to Interest Expense and to Interest Payable for $18150.