Assume Speedo International received $400,000 for long-term promissory notes that were issued on November 1. The notes pay interest on April 30 and October 31 at the annual rate of 6 percent, which was comparable to other interest rates in the market at that time. Which of the following journal entries would be required at December 31?

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Debit Credit a. Interest Expense 4,000 Interest Payable 4,000 b. Interest Expense 4,000 Cash . 4,000 c. Interest Expense 4,000 Interest Payable 8,000 Cash ... 12,000 d. Interest Expense 8,000 Interest Payable 4,000 Cash 12,000