Refer to the information for Kinsella Seed above. What journal entry should be made with respect to

Question:

Refer to the information for Kinsella Seed above. What journal entry should be made with respect to the interest payment on October 1, 2012?
a. Debit Cash 20,000; credit Interest Expense 15,000; credit Interest Payable 5,000.
b. Debit Interest Expense 15,000; credit Cash 15,000.
c. Debit Interest Expense 20,000; credit Cash 20,000.
d. Debit Interest Expense 15,000; debit Interest Payable 5,000; credit Cash 20,000.
Kinsella Seed borrowed $200,000 on October 1, 2011, at 10 percent interest. The interest and principal are due on October 1, 2012.