Wisconsin Bank lends Local Furniture Company $ $150$ comma $000$$$150,000$ on November $1.$ Local Furniture Company signs a $ $150$ comma $000$$$150,000,66\%,4$minus$$month note. The fiscal year end of Local Furniture Company is December $31.$ The journal entry made by Local Furniture Company on December $31$ is:

Question content area bottom

Part $1$

A$.$

debit Interest Expense and credit Cash for $ $1$ comma $500$$$1,500$

B$.$

debit Interest Expense and credit Interest Payable for $ $1$ comma $500$$$1,500$

C$.$

debit Interest Payable and credit Interest Expense for $ $1$ comma $500$$$1,500$

D$.$

debit Interest Payable and credit Cash for $ $1$ comma $500$