On August 1, Luang Corporation signed a $30,000, 14%, 2-year note to help finance renovations being made to the corporation headquarters. Assuming interest is accrued only when the year ends on December 31, the appropriate journal entry for the first year would be

A) Interest Expense $4,200

Interest Payable $4,200

B) Interest Expense $4,200

Notes Payable $4,200

C) Interest Expense $1,750

Interest Payable $1,750

D)Interest Expense $1,750

Notes Payable $1,750