A company has a simple interest loan for $12,000 at 6 percent for 90 days when adjusting entries must be made. The resulting adjusting entry would result in a

a. debit to interest expense and a credit to interest payable for $178

b. debit to interest expense and a credit to cash for $178

c. debit to interest expense and a credit to bank loan payable for $178

d. debit to interest expense and a credit to interest payable for $12,000

e. none of the above