On October 1, Asus Computers borrows $75,000 from Small Town Bank on a $75,000, 3-month, 6% note. Assuming interest was accrued at December 31, the entry by Asus Computers to record payment of the note and accrued interest on January 1 is

a.) Notes Payable 76,125

Cash 76,125

b.) Notes Payable 75,000

Interest Payable 1,125

Cash 76,125

c.) Notes Payable 75,000

Interest Payable 4,500

Cash 79,500

d.) Notes Payable 75,000

Interest Expense 1,125

Cash 76,125