On July 1, 2018 a retail business borrowed $135,000 to finance an office space remodel. The nine-month loan charges 8% interest and all interest and principal will be paid at
maturity (April 1, 2019). Select the entry below that the company will record at April 1, 2019.
Note Payable
A. Interest Expense
135,000
2,700
Interest Payable
5,400
Cash
143,100
B. Note Payable
135,000
Interest Expense
10,800
Cash
145,800
C. Note Payable
135,000
Interest Expense
8,100
Cash
143,100
Note Payable
D. Interest Expense
135,000
5,400
Interest Payable
2,700
Cash
143,100
Note Payable
E. Interest Expense
135,000
7,200
Interest Payable
3,600
Cash
145,800