Papa's Pizza borrowed $8,000 at 9% interest on May 1, 2020, with principal and interest due on October 31, 2021. The company's fiscal year ends June 30, 2020. What adjusting entry is necessary on June 30, 2020?

Question 7 options:

A)Interest Expense 240

Interest Payable 240

B)Prepaid Interest 120

Interest Payable 120

C)Interest Expense 120

Interest Payable 120

D)

No entry is required