On 1 April Copland Ltd borrowed $24,000 from the bank for six months at the annual interest rate of 12%. Principal and interest are payable to the bank on 1 October. The company's financial year ends on 30 June. The adjusting entry that the company should make for interest on 30 June, would be:

a.Debit Interest Payable, $720; Credit Cash, $720.

b.Debit Interest Payable, $480; Credit Cash, $480.

c.Debit Interest Expense, $720; Credit Interest Payable, $720.

d.Debit Interest Expense, $1,440; Credit Interest Payable, $1,440.

e.Debit Interest Expense, $240; Credit Interest Payable, $240.