On December 31, 20X1, Asta Corporation borrowed $65,000 by signing a 5-year, 14% installment note requiring annual payments (on December 31) of accrued interest plus fixed (equal) amounts of principal. What journal entry would record the first payment on December 31, 20X2?

a. Interest Expense . 1,820.00

Notes Payable 13,000.00

Cash .. 14,820.00

b. Notes Payable 14,820.00

Interest Payable .. 1,820.00

Cash . 13,000.00

c. Interest Expense . 9,100.00

Notes Payable .. 13,000.00

Cash . 22,100.00

d. Notes Payable .. 13,000.00

Cash . 13,000.00

e. Notes Payable .. 22,100.00

Cash . 22,100.00