Grayson Bank agrees to lend the Trust Company $100,000 on January 1. Trust Company signs a $100,000, 9%, 9-month note. What is the adjusting entry required if Trust Company prepares financial statements on June 30?
1. Interest Expense 9,000
Interest Payable 9,000
2. Interest Expense 6,750
Interest Payable 6,750
3. Interest Payable 4,500
Interest Expense 4,500
4. Interest Expense 4,500
Interest Payable 4,500