A company purchased equipment on July 1, 2018 and signed a 8 year mortgage note for $150,000 at 5% interest. The note will be paid in equal installments beginning July 1, 2019. On July 1, 2019, the journal entry to record the first installment payment will include a

credit to cash of $$150,000

debit to interest expense of $7,500

credit to interest expense of $7,500

debit to interest expense of $3,750