Al-Isteqrar Company borrows OMR 60,000 on July 1 from the Muscat Bank by signing a OMR 60,000, 10%, one year notes payable. Prepare the journal entry to record accrued interest at December 31, assuming adjusting entries are made only at the end of the year.

a.

Debit Interest Payable OMR 3,000 and Credit Interest Expense OMR 3,000

b.

Debit Interest Expense OMR 6,000 and Credit Interest Payable OMR 6,000

c.

Debit Interest Expense OMR 3,000 and Credit Interest Payable OMR 3,000

d.

Debit Interest Payable OMR 6,000 and Credit Interest Expense OMR 6,000