On October 1, Marigold's Painting Service borrows $105000 from National Bank on a 3-month, $105000, 4% note. What entry must Marigold's Painting Service make on December 31 before financial statements are prepared?

Interest Expense 1050 Interest Payable 1050

Interest Expense 1050 Notes Payable 1050

Interest Payable 1050 Interest Expense 1050

Interest Expense 4200 Interest Payable 4200