First National Bank agrees to lend $100,000 on September 1, 2014, if Cole Williams Co. signs a $100,000, 12%, four-month note maturing on January 1.the adjusting entry on Dec. 31: on a. Debit Cash 4,000 and credit Interest payable 4,000 b. Debit interest expense 4,000 and credit Interest payable 4,000 cDebit Interest payable 4,000 and credit Interest expense 4,000 d Debit Interest expense 4,000 and credit Cash 4,000