Lisa's Design Company is putting together the adjusting entries for December 31, the end of the company's fiscal year. Lisa took out a loan on November 1 that has to be repaid, including interest on January 15. As of December 31, $750 of interest has been incurred. What adjusting entry and reversing entry should Lisa's Design Company make? a. Adjusting entry: debit Interest Expense for $750 and credit Notes Payable for $750. No reversing entry is needed. b. Adjusting entry: debit Interest Payable for $750 and credit Interest Expense for $750. Reversing entry: debit Interest Expense for $750 and credit Interest Payable for $750. c. Adjusting entry: debit Interest Expense for $750 and credit Interest Payable for $750. Reversing entry: debit Interest Payable for $750 and credit Interest Expense for $750. d. No adjusting entry and no reversing entry are needed.