October 1, 2018: Reading Railroad borrowed $100,000 from Commercial Bank and signed an interest-bearing note payable. The company will use the money to buy equipment. The note was for three years and specified 8 percent annual interest payable at the maturity date of the note. The appropriate transaction to record the borrowing of funds should be: A. Debit: Equipment; Credit: Cash. B. Debit: Cash; Credit: LT Notes Payable. OC. Debit: Notes Payable; Credit: Equipment. D. Debit: Equipment; Credit: LT Notes Payable