On September 1, Banner Co. borrowed $70,000 from the City Bank for five months at 9%. Which adjustment will Banner Co. make on December 31 before issuing its financial statements?

a. Increase both Interest Expense and Interest Payable by $1,575

b. Increase both Interest Expense and Interest Payable by $2,100

c. Increase both Interest Expense and Notes Payable by $2,625

d. Increase both Interest Expense and Notes Payable by $6,300