Grayson Bank agrees to lend the Trust Company $104,639 on January 1. Trust Company signs a $104,639, 12%, 9-month, interest-bearing note. The entry made by Trust Company on January 1 to record the proceeds and issuance of the note is:

Select the correct answer.

A) Interest Expense$9,418

Cash$95,221

Notes Payable$104,639

B) Cash$104,639

Notes Payable$104,639

C) Cash$114,057

Interest Expense$9,418

Notes Payable$104,639

D) Cash$118,766

Interest Expense$9,418

Notes Payable$104,639

Interest Payable$4,709