On February 1, Larkspur Ltd. signed a 6%, twelve-month bank loan payable for $170400 to help finance increases in inventory for the spring and summer season. Assuming no entries have been made previously for the interest on this loan, what is the required adjusting entry for the interest accrued to December 31?

A

Interest Expense	852
Cash		852

B

Interest Expense	10224
Interest Payable		10224

C

Interest Expense	9372
Interest Payable		9372

D

Interest Expense	8520
Interest Payable		8520