The accounting cycle for Brazil Pavement Cement Hills Limited is from January 1 to December 31 At the start of April, the company signed an agreement to purchase a new factory for $5,000,000. The company paid 50% in cash and the remainder by taking out a 5 year loan. Annual interest expense on the loan is $400,000. Interest will be paid in cash on March 31 each year of the loan period. Annual depreciation on the new factory is $600,000 At the end of the accounting cycle the CFO of Brazil Pavement Cement Hills Limited estimated that the new factory would have increased electricity and water usage for a full year by 20%. Utility expenses (that comprised electricity and water) totaled $2,000,000 for the last full year. Required: At the end of the accounting cycle Brazil Pavement Cement Hills Limited would have made adjustment entries to "Interest Payable" and "Utility Expenses' of the following amounts? Select one: a. Credit. Interest Payable - $300,000; Debit. Utility Expense - $2,300,000 b. Credit. Interest Payable - $400,000; Debit. Utility Expense - $2,300,000 c. Credit Interest Payable - $300,000; Debit. Utility Expense - $2,400,000 d. Debit: Interest Payable - $400,000; Credit. Utility Expense - $2,400,000