Bell Provincial Bank agrees to lend Griswold Brick Company $80,000 on January 1. Griswold Brick Company signs an $80,000, 9-month, 5% note. The entry made by Griswold Brick Company on January 1 to record the proceeds and issue of the note is

Select one:

A.

Interest Expense

3,000

Cash

77,000

Notes Payable

80,000

B.

Cash

80,000

Interest Expense

3,000

Notes Payable

80,000

Interest Payable

3,000

C.

Cash

80,000

Interest Expense

3,000

Notes Payable

83,000

D.

Cash

80,000

Notes Payable

80,000