TB MC Qu. 2-55 (Algo) Mama's Pizza Shoppe borrowed...

Mama's Pizza Shoppe borrowed $8,200 at 9% interest on May 1, 2021, with principal and interest due on October 31, 2022. The company's fiscal year ends June 30, 2021. What adjusting entry is necessary on June 30, 2021?

Multiple Choice

• Interest expense	246
  Interest payable		246

• Prepaid interest	123
  Interest payable		123

• No entry.

• Interest expense	123
  Interest payable		123