RH Smith Company borrowed $20,000 from First National Bank on January 1 at an agreed upon interest rate of 9%. The note is for 9 months with all interest due at the end of the note. What adjusting entry is necessary for the company on March 31?

Interest expense 450 Interest payable 450

Interest expense 600 Interest payable 600

Interest expense 1350 Interest payable 1350

Interest expense 450 Notes payable 450