Grayson Bank agrees to lend the Trust Company $114,918 on January 1. Trust Company signs a $114,918, 11%, 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. Cash $114,918

Notes Payable $114,918

B. Interest Expense $9,481

Cash $105,437

Notes Payable $114,918

C. Cash$124,399

Interest Expense$9,481

Notes Payable$114,918

D. Cash $129,140

Interest Expense $9,481

Notes Payable $114,918

Interest Payable $4,741