On October 1, 2015, Jacob's Beach Umbrellas borrowed $5,000 on a 12%, one-year note payable. Interest was payable semiannually. A correct adjusting entry was made on December 31, 2015. The reversing entry that should be made on January 1, 2016, is:

a. DR: Interest Expense $300; CR: Cash $ 300

O b. DR: Interest Payable $150; CR: Interest Expense $150

C. DR: Interest Expense $150; DR: Interest Payable $150; CR: Cash $ 300

O d. No entry