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Moss County Bank agrees to lend the Crane Company $515000 on January 1. Crane Company signs a $515000, 6%, 9-month note. What entry will Crane

Moss County Bank agrees to lend the Crane Company $515000 on January 1. Crane Company signs a $515000, 6%, 9-month note. What entry will Crane Company make to pay off the note and interest at maturity assuming that interest has been accrued to September 30?

A-

Notes Payable 515000
Interest Payable 23175
Cash 538175

B-

Interest Payable 15450
Notes Payable 515000
Interest Expense 7725
Cash 538175

C-

Notes Payable 538175
Cash 538175

D-

Interest Expense 23175
Notes Payable 515000
Cash 538175

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