View Policies Current Attempt in Progress Pharoah Company borrowed $ 53000 from the bank signing a 6%, 3-month note on September 1. Principal and interest are payable to the bank on December 1. If the company prepares monthly financial statements, the adjustment that the company should make for interest on September 30. would be: increase Cash, $ 795: increase Interest Payable, $ 795. increase Interest Expense, $ 3180: increase Interest Payable. $ 3180. O increase Interest Expense, $ 265: increase Interest Payable, $ 265. decrease Note Payable. $ 3180: decrease Cash. $ 3180