Question: Kinsella Seed borrowed $ 2 0 0 , 0 0 0 on October 1 , 2 0 2 2 , at 1 0 % interest.

Kinsella Seed borrowed $200,000 on October 1,2022, at 10% interest. The interest and principal are due on October 1,2023. What journal entry should be made with respect to the interest payment on October 1,2023?
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.

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