On January 1, Clive Corporation signed a $175,000, 8%, 30year mortgage that requires semiannual payments of $7,735 on June 30 and December 31 of each year. The journal entry to record the first semiannual payment would be (round interest calculation to the nearest dollar) to:

A.

debit Interest Expense, $7,000; debit Mortgage Payable, $735; credit Cash, $7,735.

B.

debit Interest Expense, $7,000; debit Mortgage expense, $735; credit Cash, $7,735.

C.

debit Mortgage Payable, $7,735; credit Cash, $7,735.

D.

debit Interest Expense, $735; debit Mortgage Payable, $7,000; credit Cash, $7,735.