Assume a company has the following information:

Note Payable: $100,000

Interest Rate: 12%

Issue Date: September 1

Year-end: December 31

Assuming adjustments are made at year-end, which of the following statements is true at year-end?

Interest Expense is credited for $4,000

Cash is credited for $4,000

Interest Payable is debited for $4,000

Interest Expense is debited for $4,000