Q1: On April 30, 2023, a company issued $500,000 worth of 6% bonds at par. The term of the bonds is 10 years, with interest payable semi-annually on October 31 and April 30. The year end of the company is November 30. What are the journal entries related to interest for year end of 2023? Note that interest must be accrued at the end of each year. Select one:

a. Debit to interest expense of $2,500; Credit to interest payable of $2,500

b. Debit to interest payable of $15,000; Debit to interest expense of $15,000

c. Debit to interest expense of $2,500; Credit to cash of $2,500

d. Debit to interest expense of $30,000; Credit to cash of $30,000