Manhattan Company recorded an adjusting entry to accrue Interest owed of $600 as of December 31, Year 1. When the related note was paid during Year: 2. the company paid $1.050 in interest. Which of the following journal entries correctly records this Year 2 transaction?
(Assume that the entry to record the payment of the note itself was recorded in a separate journal entry)

Multiple choices

• a.

Interest Expense	450
Interest payable	600
Cash		1050

• b.

Interest Expense	1050
Cash		600
Interest payable		450