Kinsella Seed borrowed $171,000 on October 1, 2023, at 10% interest. The interest and principal are due on October 1, 2024. In addition to a debit to Note Payable for $171,000, what should the journal entry for repayment on October 1, 2024 include?

a.Debit Interest Expense $12,825; credit Cash $183,825.

b.Debit Interest Expense $12,825; debit Interest Payable $4,275; credit Cash $17,100.

c.Debit Interest Expense $4,275; debit Interest Payable $12,825; credit Cash $188,100.

d.Debit Interest Expense $17,100; credit Cash $188,100.