Watunga County Bank Agrees to Lend Hoffman Granite Company $600000 $\begin{array}{ll}\text { Notes Payable. } & 636,000 \\\text { Cash} && 636,000 \\\end{array}$

Watunga County Bank agrees to lend Hoffman Granite Company $600000 on January 1. Hoffman Granite Company signs a $600000 8% 9-month note. What entry will Hoffman Granite make to pay off the note and interest at maturity assuming that interest has been accrued to September 30? a.
$\begin{array}{ll}\text { Notes Payable. } & 636,000 \\\text { Cash} && 636,000 \\\end{array}$

b.
$\begin{array}{ll} \text { Notes Payable. } & 600,000 \\ \text { Interest Payable} & 36,000 \\\text { Cash} && 636,000& \\\end{array}$

c.
$\begin{array}{ll}\text { Interest Expense. } & 36,000 \\\text { Notes Payable } & 600,000 \\\text { Cash} && 636,000 \\\end{array}$

d.
$\begin{array}{ll}\text { Interest Payable. } & 24,000 \\ \text { Notes Payable } & 600,000 \\ \text { Interest Expense } & 12,000 \\\text { Cash} && 636,000\end{array}$