Manhattan Company recorded an adjusting entry to accrue interest owed of $1300 as of December 31, Year 1. When the related note was paid during Year 2, the company paid $2450 in interest. Which of the following journal entries correctly records this Year 2 transaction? (Assume that the entry to record the payment of the note itself was recorded in a separate journal entry.)

Select one:

a.

Interest expense	1150
Interest payable	1300
Cash		2450

b.

Interest expense	1150
Cash		1150

c.

Interest expense	2450
Cash		1300
Interest payable		1150

d.

Interest expense	2450
Cash		2450