Sage Hill Industries borrows $21200 at 7% annual interest for six months on October 1, 2022. Which is the appropriate entry to accrue interest if Sage Hill employs a December 31, 2022, fiscal year?

Dr Interest Expense $371 Cr Notes Payable $371

Dr Interest Expense $1484 Cr Interest Payable $1484

Dr Notes Payable $1484 Cr Interest Payable $1484

Dr Interest Expense $371 Cr Interest Payable $371