Ogilvie Company issued a $30,000 face value discount note to Bates County Bank on June 1, 2016. The note had a 6 percent discount rate and a one-year term to maturity. Which of the following journal entries correctly shows the adjustment for accrued interest at the end of the year, December 31, 2016?

	Debit	Credit
Interest Expense	1,050
Discount on Notes Payable		1,050

	Debit	Credit
Interest Expense	1,050
Notes Payable		1,050

	Debit	Credit
Interest Expense	1,800
Discount on Notes Payable		1,800

	Debit	Credit
Interest Payable	1,800
Interest Expense		1,800