Kinsella Seed borrowed \(\$ 200,000\) on October 1, 2018, at \(10 \%\) interest. The interest and principal are due on October 1, 2019. What journal entry should be recorded on December 31, 2018?

a. Debit Interest Expense 5,000; credit Interest Payable 5,000.

b. Debit Interest Receivable 20,000; credit Interest Expense 20,000.

c. Debit Interest Payable 5,000; credit Interest Expense 5,000.

d. No entry is necessary.