Uncle Tupelo's Gifts Signs a Three-Month Note Payable to Help $\begin{array}{llr} \text { Interest Expense} &1,500\\ \text {Interest Payable } &&1,500\\\end{array}$

Uncle Tupelo's Gifts signs a three-month note payable to help finance increases in inventory for the Christmas shopping season. The note is signed on November 1 in the amount of $75,000 with annual interest of 12%. What is the adjusting entry to be made on December 31 for the interest expense accrued to that date, if no entries have been made previously for the interest? a.
$\begin{array}{llr} \text { Interest Expense} &1,500\\ \text {Interest Payable } &&1,500\\\end{array}$

b.
$\begin{array}{llr} \text { Interest Expense } &2,250\\ \text { Interest Payable} &&2,250\\\end{array}$

c.
$\begin{array}{llr} \text { Interest Expense} &1,500\\ \text { Cash } &&1,500\\\end{array}$

d.
$\begin{array}{llr} \text { Interest Expense } &1,500\\ \text { Notes Payable} &&1,500\\\end{array}$