On October 1, 2014, Dakota Company issued an $800,000, 10%, nine-month interest-bearing note. If the Dakota Company is preparing financial statements at December 31, 2014, the adjusting entry for accrued interest will include a:

credit to Interest Payable of $40,000.

debit to Interest Expense of $30,000.

credit to Notes Payable of $20,000.

debit to Interest Expense of $20,000.