Goodman Company borrowed $100,000 cash on September 1, 20B, and signed a one-year 12%, interest-bearing note payable. The required adjusting entry at the end of the accounting period, December 31, 20B, would be:
a. Interest expense 4,000 Interest payable 4,000
b. Interest expense 12,000 Interest payable 12,000
c. Notes payable 100,000 Interest expense 12,000 Cash 112,000
d. Interest payable 4,000 Interest expense 4,000
e. None of the above is correct.