Utopia City (a calendar year-end city borrowed $20,000 by issuing a TANP (or TAN) on September 1of the current year. The note is payable on February 28 next year ea six month note and includes 12% annual interest (non-compounded). Assuming no previous accruals related to the note, what entry would need to be made at calendar year-end? a. Debit Interest Expense $1200 Credit Interest Payable $1200 b. Debit Expenditures - Debt Service $1200 Credit Accrued Interest Payable $1200 c. Debit Expenditures - Debt Service $ 800 Credit Accrued interest Payable $ 800 Od. Debit Interest Expense $ 800 Credit Interest Payable $ 800