Dakota Company received a $25,000, one year, 9 percent bank loan on October 31, 2018. Interest is payable at the end of the loan term. Dakotas adjustment at the end of their fiscal year on March 31, 2019 is to increase Interest Payable and Interest Expense for:

Select one:

a. $1,125

b. $375

c. $937.50

d. $2,250