Valor Company issued a $10,000 face value note to the State Bank on October 1, Year 1. The note had a 12 percent annual interest rate and a one- year term. Which of the following general journal entries would be necessary to record accrued interest on December 31, Year 1? a. Interest Expense $900 Interest Payable $900 b. Interest Expense $300 Interest Payable $300 c. Interest Payable $900 Interest Expense $900 d. Interest Payable $300