Cuthill Corporation has 2 loans outstanding: $8118 taken on Feb 1, 20x1 at 8% interest $18214 taken on Nov 30, 20x1 at 12% interest.

The final year-end adjusting entry for interest expense for the year 20x1 will be:

Select one:

a. A credit to interest expense of $ 960

b. A debit to interest expense of $ 723

c. A debit to interest expense of $ 777

d. A credit to interest expense of $ 905