On November 1, 2021, New Morning Bakery signed a $202,000, 6%, six-month note payable with the amount borrowed plus accrued interest due six months later on May 1, 2022. New Morning Bakery should record which of the following adjusting entries at December 31, 2021? (Do not round your intermediate calculations.)

Multiple Choice

• Debit Interest Expense and credit Cash, $6,060.

• Debit Interest Expense and credit Cash, $2,020.

• Debit Interest Expense and credit Interest Payable, $2,020.

• Debit Interest Expense and credit Interest Payable, $6,060.