57.On 1 October 2019 Point West Property Pty Ltd purchased a building for $1,250, 000, paying $250,000 as a deposit with the balance being financed by Hobart Commercial Bank. The cost of debt relating to the Mortgage was 12% per annum. The monthly repayment was $14 000.

The entry to record the payment on 1 November 2019 is:

Group of answer choices

1.DR: Interest expense $10 000; DR: Mortgage payable $4,000; and CR: Cash $14 000

2.DR: Mortgage payable $14 000; CR: Cash $14 000

3.DR: Interest expense $10 000; DR: Cash $4,000; and CR: Mortgage payable $14 000

4.DR: Interest expense $14 000; CR: Cash $14 000