During the year, Calabash Clinic made a $50,000 cash payment toward its bank loan which it had previously recorded; $40,000 was for principal, and $10,000 was to pay the full amount of interest due. How should this transaction be recorded (choose the best answer available)?

	A.	Decrease Cash by $50,000, decrease Notes Payable by $40,000, and decrease Equity by $10,000
	B.	Decrease Cash by $50,000, increase Accounts Receivable by $40,000, and increase Prepaid Interest by $10,000
	C.	Decrease Revenues by $50,000, decrease Accounts Receivable by $40,000, and decrease Interest Expense by $10,000
	D.	Decrease Cash by $50,000, decrease Notes Payable by $40,000, and decrease Interest Liability by $10,000 As a general rule, there is no such thing as Interest Liability. Interest is usually simply an expense.
	E.	Decrease cash by $50,000, decrease Notes Payable by $40,000, and decrease Prepaid Interest by $10,000