Kinsella Seed borrowed $200,000 on October 1, 2008, at 10% interest. The interest and principal are due on September 30, 2009. What journal entry should be recorded on December 31, 2008?

	a.	Debit Interest Payable 5,000; credit Interest Expense 5,000.
	b.	Debit Interest Receivable 20,000; credit Interest Expense 20,000.
	c.	Debit Interest Expense 5,000; credit Interest Payable 5,000.
	d.	No entry is necessary.