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Kinsella Seed borrowed $207,000 on October 1, 2023, at 10% interest. The interest and principal...

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Accounting

Kinsella Seed borrowed $207,000 on October 1, 2023, at 10% interest. The interest and principal are due on October 1, 2024. In addition to a debit to Note Payable for $207,000, what should the journal entry for repayment on October 1, 2024 include?

a.Debit Interest Expense $5,175; debit Interest Payable $15,525; credit Cash $227,700.

b.Debit Interest Expense $15,525; credit Cash $222,525

c.Debit Interest Expense $20,700; credit Cash $227,700.

d.Debit Interest Expense $15,525; debit Interest Payable $5,175; credit Cash $20,700.

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