Morrison Corporation Borrowed $49,000 from Commercial Bank on June 1

Morrison Corporation borrowed $49,000 from Commercial Bank on June 1 of the current year. The bank required 8% interest. Interest will be paid every three months until the 9-month note is paid. What is the total Interest Expense and the Interest Payable at December 31 of the current year? (Do not round intermediate calculations. Only round your final answer to the nearest cent.)

A) Interest Expense $2286.67; Interest Payable $2286.67
B) Interest Expense $326.67; Interest Payable $326.67
C) Interest Expense $2286.67; Interest Payable $326.67
D) Interest Expense $3920.00; Interest Payable $2286.67