Unite Ltd provided a loan of $1 000 000 to its subsidiary Inspire Ltd. Interest of $100 000 was each year since 1 July 2021.

Which of the following adjustments is needed at 30 June 2023 in relation to the interest charged?

Select one:

A.

Dr Retained earnings $100 000

Dr Interest Income $100 000

Cr Interest expense $200 000

B.

No adjustment is needed

C.

Dr Interest Income $200 000

Cr Interest expense $200 000

D.

Dr Interest Income $100 000

Cr Interest expense $100 000