Watunga County Bank agrees to lend Hoffman Granite Company $600,000 on January 1. Hoffman Granite Company signs a $600,000, 8%, 9-month note. What is the adjusting entry required if Hoffman Granite Company prepares financial statements on June 30?

Select one:

a. Interest Payable........................................................................... 24,000

Cash.............................................................................. 24,000

b. Interest Expense.......................................................................... 24,000

Cash.............................................................................. 24,000

c. Interest Expense.......................................................................... 24,000

Interest Payable............................................................ 24,000

d. Interest Payable........................................................................... 24,000

Interest Expense........................................................... 24,000