Moss County Bank agrees to lend the Sadowski Brick Company $500,000 on January 1. Sadowski Brick Company signs a $500,000, 6%, 9-month note. The adjustment required if Sadowski Brick Company prepares financial statements on June 30 includes a(n)

Select one:

a. Increase to Interest Expense and a decrease to Cash for $15,000

b. Increase to Interest Expense and to Interest Payable for $15,000

c. Decrease to Interest Payable and to Interest Expense for $15,000

d. Decrease to Interest Payable and to Cash for $15,000